Gold and silver continue down the slippery slope to the November 5, 2014 lows. The mining stocks really got hammered.
Yesterday I said; “I think they will kick the can down the road and cave in again to help Greece” and that’s what happened today and as a result, the DOW went up triple digits and all is well in the world again….until the can needs kicked again.
I was asked a question today from someone about Gary North who is a person I have followed for years. He is more in the Austrian Economics camp, which I am as well, but we differ on our understanding of inflation/deflation and the dollar. As many of you know, I have been dollar bullish for some time, and have said this could have an affect on the price of gold and silver. It has. But the group below, including Gary North, have been negative on the dollar all along and never gave deflation a chance because of their only seeing the money printing and ignoring the credit contraction that has been occurring. While true the quantitative easing has helped buoy the markets, many of these Austrians don’t give it credit for the rebound and only look at the longer term consequences of what it will do (kicking the can down the road). My eyes are wide open to the eventuality of what QE and money printing will do, but I can’t ignore the price action.
Here is what I wrote to this person;
I am familiar with Gary North. He writes for the LewRockwell.com site a lot. I don’t have any real disagreement with him except he has for the last few years (and the same goes with Rockwell, Schiff, John Williams from ShadowStats, Gerald Celente and others), not got the dollar and deflation story right. They don’t address money velocity in a way that shows the hyperinflation outlook some of them have.
I am not perfect by any means, but I did in Chapter 4 of my book Buy Gold and Silver Safely explain the roadmap and in my next book, Illusions of Wealth will be the next step towards awareness from my point of view.
All of the following are post 2011 except for North’s critique by Mish Shedlock (I could easily present this side of the story as well, and make more money using fear, but I reserve the right to time it better than these guys based on my own research – doesn’t mean they won’t eventually be right, but I am trying to work on future solutions just in case too).
Williams on hyperinflation (every year)
Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.