Americas Silver Corp fka USAPF

[permabear]

Today's action in gold is very encouraging. If gold can hold and close above $1250 for a couple days, we may have finally broke new ground. Shorts, like Tom O'brien, may be forced to cover. Even bigger shorts, like JP Morgan, who knows what they'll do. Anyway, I never sold anything believing in the gold story even though I was nervous that $1250 could be a barrier that could mess up the story. I do remain bearish on the stock market. If the stock market takes another tumble, it will be anyone's guess as to which way gold will trade. It's gone both directions in recent months in comparison to the moves in the stock market.

I do still believe that deflation is the predominant trend right now. Inflation can only take charge if the governments around the world choose to use any means to reflate. It looks like the U.S. and Europe are in disagreement right now about what approach to take. Europe is in an austerity mode and the Obama administration at least wants to keep stimulating. I believe Bernanke is a perennial inflator. But the mood in the country is against deficits. We do live in interesting times.