Gold And Silver Are On Way Up Sooner Than We Expected.

July 16, 2008 | By | Reply More

Even though oil reversed course yesterday, the ongoing weakness of the dollar and the worsening signs for the US economy, particularly the banking and financial sector, is adding to appeal of both metals.

Readers will know that we have reservations about the dependence upon technical analysis that many market players rely on but on this occasion our resident analyst has brought to our attention numerous indicators that point to gold and silver ascending the heights starting now.

In other words gold and silver are on their way up sooner than we expected. 

That good, old, and usually reliable guidance that ‘the trend is your friend” has come into play in the last week or so and, bar a few blips along the way, looks set to continue upward for some time.

Up to last week we saw a number of market pundits tentatively suggesting that a market bottom had either been reached or was around the corner and that there were some bargains to be picked up.

Such has been the air of gloom surrounding the markets that even the most enterprising and reliable companies have seen their stocks hit. The events this week have only exacerbated an already bad situation with the Fed, Paulson and Bernanke seemingly totally out of their depth.

This is no longer a time of uncertainty. It is obvious to all the western democracies, that times have become, and are likely to remain, hard for years to come. Living standards will have to be adjusted and the realization that real power is being transferred to China, with other emerging economies hanging on to its coattails, will have to be faced.

All of which brings us to the preservation of capital.

It seems to us that the markets are showing us the way with gold and silver, historically the measures of value, leading the way, as it dawns on investors worldwide that this is the only safe haven market now available. Paper money is being shown up as worthless unless backed up by gold as it was for centuries before America in its pomp and pride decreed otherwise in the 1970s.

The inability of politicians to face up to the realities of their ill thought through schemes for instant popularity and clinging to power whatever the ultimate cost to Joe Public is coming home to roost.

Gold and Silver could be the only reliable answer to preserving your capital in the months and years to come. Buy the dips and only think about selling the peaks is now our philosophy while we will try to bear in mind that Mr Market is at best totally unreliable and very anxious to get his hands on our little hoard. 



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