"At that point, nothing is left but gold. Now trading at $1790, it could zoom right past $2000 to $3000 an ounce" LINK"Inventories to result in big hit to Q3 GDP" - It looks like wheels are falling off the U.S. economy. Of course, those of us who have been paying attention to the details beneath the headlines were expecting that the lipstick that the Government and Wall Street have been putting on the proverbial pig would soon wear off. This was the first inventory decline since September 2009. Here's the report: LINK
So Americans in reality have less money to spend going forward and we know banks are not lending because the average credit profile of the average American sucks. Here's proof of that: The national mortgage delinquency rate (the rate of borrowers 60 or more days past due) increased for the first time since the end of 2009. Here's that LINK Call me crazy, but I'm guessing that if your neighbor isn't making his mortgage payments, he ain't rushing out to buy a sparkling new GM or Ford either.
Ultimately, the Government's response to all of this will be to print more money. A former Bank of Japan board member is calling for Japan to put its printing press into overdrive: LINK This will be followed by the ECB and the Fed cranking up their Heidelbergs. So we have the perfect recipe for much higher gold and silver prices: negative GDP, negative interest rates, money printing and higher inflation. Don't pay attention to the day to day or week to week price action in the metals - it's mostly traders and manipulators. One of the board members of the CFTC is now openly admitting that the silver market is highly manipulated. The price of gold and silver six months from now will be substantially higher than where it is now.