Saturday, November 28, 2015

Precious Metals Sector Given Green Light And Low Risk Entry

  • Have the problems exposed by the financial crisis of 2008 been addressed and dealt with to any extent? - no they have not, they have been papered over by creating more debt and printing money, thus making the underlying problems much worse.
  • Has debt shrunk since 2008? - no, it has exploded.
  • Has the money supply contracted since 2008? - no, it has expanded massively.
  • Has the derivatives pyramid been reduced in magnitude since 2008? - no it has continued to compound.
  • Has the global economy grown sufficiently in the years since 2008 to more than cover the extra load imposed by the growth in the factors listed above? No, it has not, all it is has done is limp along, lamed by debt.
Logically, one would expect massive expansion or growth in the factors listed above to be bullish for gold and silver, which should hold their value in real terms, and many PM sector investors banking on such logic have as we know been ruined, so why have gold and silver dropped for 4 years now? (more)

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