JULY 24 2007 12:15PM - A general equities meltdown is turning what would otherwise have been a stellar day for silver and gold into another missed opportunity. Before succumbing, silver managed to almost reach $13.50 on a cash basis earlier today, but is now trading at just $13.30 as I write this. The PM stocks are also weak with many silver companies down several percent. While unfortunate, this spillover is likely to be short-term, perhaps representing the short break that PMs need before charging higher.
I have just posted the latest of Prof. Fekete's articles, in which he argues that the dollar is not about to crash. What's more important to gold and silver, argues the professor, is that interest rates are set to continue their multi-decade decline because derivatives have made bond speculation risk-free and therefore in great demand. Such a trend is not easy to change, and the powers that be are not interested in changing it. Thus, gold and silver bugs should ignore the noise and accumulate on dips, never selling. At some point, the basis will turn permanently negative indicating infinite demand for, and zero supply of, gold and silver. This is another groundbreaking paper by Prof. Fekete and I urge all to read it.
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