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.
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