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Additional Bullish Observations for Gold and Silver.

Commentaries & Views

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?

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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