This Is The Real Reason Why The Public Is Broke And The Middle Class Is Being Destroyed
As we kick off the fourth week of trading in November, this is the real reason why the public is broke and the middle class is being destroyed.
James Turk: “It is good to see gold and silver starting the week in a positive way with their prices stabilizing, Eric. When you look at the recent dip in prices, it’s been a rough couple of weeks. But then again, when you see distortions like backwardation in the market, it is a good time to buy…
Gold and silver went into a steep backwardation after Trump’s victory, with the spot price above the price for December delivery. In fact, even though December delivery begins in just over a week, spot gold and silver are still backwardated. So the demand for physical metal remains strong.
I have been expecting to see strength in the precious metals as we work toward the end of the year. It’s always impossible to predict when the short-term trend will turn, but it is time for a short-term trend reversal. This week often sees them.
With the US celebrating Thanksgiving on Thursday, there are only three days of trading. So look for short covering and buying by bargain hunters to take the precious metals higher this week. In fact, with today’s action, I expect that both gold and silver are now beginning the long road back to higher prices. As they do so, gold and silver will simply be resuming this year’s uptrend.
After a couple of weeks like we just had, it is easy to lose sight that gold and silver are up 14% and 20% respectively year-to-date. Owning physical gold and physical silver allows everyone over the long-term to keep their head above water, which is not easy to do as the dollar and other currencies continue to lose purchasing power.
Part of the problem, Eric, is that it is hard to see how badly currencies are doing. It is a natural tendency to focus on the short-term, so it is easy to lose sight of the long-term. To illustrate this point, I was reading the latest report of ShadowStats.com, and this chart literally jumped off the page when I saw it. It is very revealing.