Aug 1 2008 3:00PM
Gold and silver seemed to have stalled out, raising questions as to whether or not the bull market is still intact.
It still is! I remember during the bull market of the ‘70s when gold and silver stalled out for as much as two years with a decline of up to 30% on the way to their eventual highs of $50 silver and $850 gold. Then as now we heard a chorus of voices claiming the bull market was over, so liquidate! The fundamentals of money-supply growth were still in place, so I begged you to hang on, and we were eventually handsomely rewarded.
Today is the same, only more so. With government unfunded liabilities (for Social Security, Medicare and Medicaid) more than $50-trillion, and no end in sight, and government doing its ostrich act (head in the sand) hoping the pain will just go away, and their standard practice of just throwing money at every intractable problem, we have set the stage for continuing soaring inflation.
I am doing a lot of radio talk show interviews, and the hosts keep asking me “what proof do you have of future inflation?” My answer? “Haven’t you been to the grocery store lately, or bought any gas? It’s here now; the proof is all around you.”
So hang in there and be patient. Someday you will brag about buying silver below $20 and gold under $100.
The Stock Market
The SEC has decided to artificially support the market by banning much short selling of many sliding stocks, so that bearish activity goes away, and only bullish buying remains. Now, if you think a stock is going down, you can’t short the market, you call only buy or sell out.
I’ll have more to say about this blatant anti-free-market government action in a future E-Letter.
By Howard Ruff
The Ruff Times
Howard J. Ruff, the legendary author and financial advisor, has re-edited and will re-issue his 1978 mega best seller, How to Prosper During the Coming Bad Years, still the biggest-selling financial book in history, with 2.6 million copies in print. He is founder and editor of The Ruff Times Financial Newsletter. This article appeared in the May 9, 2008 issue of The Ruff Times. The newsletter is much more comprehensive and deals with a broad spectrum of middle-class financial issues and includes an Investment Menu from which you can build your portfolio.
(You can learn about it here). The Ruff Times has served more than 600,000 subscribers – more than any financial-advisory newsletter in the world. His new book is now in book stores or at www.rufftimes.com.