Money & Markets

The last item on our “crisis agenda” may be the most important of all, perhaps because it may be the most unpredictable.

Based on historic indicators, last month’s precious metals performances gave us two reasons for optimism.

This is yet another potential danger to the financial and social health of America—and one which the precious metals markets appear to be taking under consideration.

We believe this possibility of a housing crisis is an important consideration in our prediction of a positive price market for the precious metals this year.

During the past month, two of our favorite sources of fundamental information for the precious metals markets have issued their summary reports looking ahead to the coming year.

As we have repeated quite often, rising inflation—or, more particularly, the expectation of rising inflation—has historically been perhaps the most important ingredient of all in past precious metals bull markets.

Over the past few months we have noted a gradual increase in news relating to inflation—but during the past month this gradual increase has accelerated steadily and has now taken on the appearance of a virtual flood.

Given the astonishing increase in government expenditures of the past two years, one must ask if there is another parade of taxes and levies waiting in the wings, and, directly related to our precious metals, if there is some form of tax rebellion also waiting in the wings.

Seldom, if ever, has this writer seen anything comparable to the level of hostility, disrespect and outright hatred now being demonstrated across America. If anyone thinks this is an erroneous conclusion, please consider the following ongoing events…

From our precious metals point of view, I would note that if the production of these metals fails to meet demand, prices will likely rise, perhaps very smartly, thereby fueling additional increments of future inflation.