Is it just me, or did nothing happen this week?

It isn’t just me, is it? Nothing did happen this week.  By the numbers:

• DOW down 1.16%
• Gold down 1.01%
• Oil down 1.65%

But even after that down week, years to date everything is up:

• S&P 500 up 11.09%
• DOW up 7.06%
• Oil up 6.66%
• Gold up 4.83%

I find it amazing that after massive money printing by governments around the world, the paper stock markets (S&P 500) are up by more than twice as much as gold this year.  Amazing.

Even taking a longer view, gold is up about 15% from a year ago, but even the DOW is up about 10%.

So what will happen tomorrow, or next week?  I have no idea.

Where will we be 5 years from now? I think the answer to that question is much clearer.  You can print money and pump up the markets for a day, or a week, or a year, but you can’t inflate forever.  You can use the paper COMEX to depress the price of gold and silver for a short period of time, but eventually that game ends as well.

I can only assume that we will look back on gold at $1,660 and silver at $32 and say to ourselves “wow, want a fantastic buying opportunity.”

John Embry of Sprott Asset Management is quoted as saying that for gold, the downside may be $50, but the upside could be $1,000, and I suspect he is correct.  If so, the time to continue accumulating is now.

You can stare at a tree for a week and nothing changes.  You can’t actually watch grass grow.  But if you step back, and observe over a longer period of time, the trend is obvious.

Since nothing much happened this week I have nothing more to say.

I am now going to step back and watch.  See you next week.

Tagged as: Gold, John Embry