Additional Bullish Observations for Gold and Silver.
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
This first chart is courtesy CBO and J. P. Morgan.
It shows the exponential trend in US National Debt as a percentage of GDP. This debt started out as ‘printing press money’ and as long as the trend continues its rise, investors are likely to flock into precious metals in a search for safety.
This next chart (courtesy Stockcharts.com), features the gold to silver ratio.
In the middle we see the gold to silver ratio which has once again risen above the 80:1 level. Historically, when it reaches this level, it has coincided with important bottoms in gold (see top of chart), and silver (bottom of chart). The green arrows point to these bottoms. The question marks at the right wonder if history is about to repeat.
Our final chart is courtesy Stockcharts.com and it compares gold to the US long bond.
The blue arrows point to upside breakouts above moving averages. The first green arrow points to a rise in the gold price. Is history about to repeat?