Global Precious Metals Correction: Healthy and Overdue

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Lacking answers for the suddenness and the strength of the down move that knocked gold down 11% from $1,025 to $909 (silver dropped 20% from $21.20 to $16.85) within 4 days, I hope the following questions may represent a guideline that may help you not to throw away all nerves and your gold and silver investments...Can you see any structural improvement in the triple US deficits?...Do you think the banking crisis is over or will we see more failures?...

The recent global meltdown of precious metals prices is a healthy and overdue correction in a strong bull market.

Lacking answers for the suddenness and the strength of the down move that knocked gold down 11% from $1,025 to $909 (silver dropped 20% from $21.20 to $16.85) within 4 days, I hope the following questions may represent a guideline that may help you not to throw away all nerves and - mon dieu - your gold and silver investments.

Here come the questions. Find the answers yourself as it is always best to invest along proprietary knowledge and not the advice of others (when did your broker recommend precious metals investments the last time?)

Why should Federal Reserve Notes reverse their slide since 2001 when the Fed uses every opportunity to crank up the electronic printing press?

Both the Fed and the ECB have been lamenting a worrisome inflation outlook for some time now. Have they enacted a single (tightening) step since? (I am talking action, not empty words.)

Can you see any structural improvement in the triple US deficits?...Do you think the banking crisis is over or will we see more failures?...Global gold production may actually fall this year below 2,500 tons while demand hovers around 5,000 tons. Is this good or bad for prices?...Short positions in COMEX gold and silver have kept rising through the latest record advances. Who are those "investors" that can afford to short such markets without running into serious margin calls?

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