Market Flashing Growth Profile
I am placing gold and silver on official BullBear Trading Service long term buy signals as of today. The commodities complex in general is breaking out across the board in spite of continued resilience in the US dollar and in general world markets are flashing an inflationary growth profile.
The charts seem to be saying that the fundamentals on silver are pretty strong. Silver has been trading in a much closer relationship to copper and other economically sensitive industrial metals than it has with its traditional pairing, gold.
Silver and copper seem to be fairly indifferent to the strength or weakness in the dollar whereas gold has continued to trade as a near mirror image of the greeback.
In my view the markets are saying that growth is in the pipeline. We anti-monetarists may not like it, but the message of the market, as I interpret it at this time, is that the world economy is poised to go through a growth phase. Monetary inflation stimulating economic growth is what the Keynsians have promised and the markets seem to be responding.
Will the growth be sufficient to negate the significant debt imbalances imposed by this strategy? We should remember that there is as yet an entire world to build out and consumerize and this may indeed be the engine of growth going forward.
It has long been my view that the events of 2007-2008 were analogous to the Panic of 1907--a "money panic"--and not to the crash of 1929. I do not believe that we have seen our '29 equivalent yet--and it may be some time off.
The charts seem to be saying that the fundamentals on silver are pretty strong. Silver has been trading in a much closer relationship to copper and other economically sensitive industrial metals than it has with its traditional pairing, gold.
Silver and copper seem to be fairly indifferent to the strength or weakness in the dollar whereas gold has continued to trade as a near mirror image of the greeback.
In my view the markets are saying that growth is in the pipeline. We anti-monetarists may not like it, but the message of the market, as I interpret it at this time, is that the world economy is poised to go through a growth phase. Monetary inflation stimulating economic growth is what the Keynsians have promised and the markets seem to be responding.
Will the growth be sufficient to negate the significant debt imbalances imposed by this strategy? We should remember that there is as yet an entire world to build out and consumerize and this may indeed be the engine of growth going forward.
It has long been my view that the events of 2007-2008 were analogous to the Panic of 1907--a "money panic"--and not to the crash of 1929. I do not believe that we have seen our '29 equivalent yet--and it may be some time off.
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