This should scare the hell out of the silver and gold bugs. But really, the momentum in the sector is driven by people who really believe the system is going to fall apart in an inflationary explosion any minute now. Problem is that minute has stretched out to 30 years and counting. Most of 'em love to see this kind of hysteria. But it never seems to work out.
It is a sad reality that gold is going to probably make its mega move when many of its currently most ardent promoters are in a defensive mode, scared of deflation and the famous (at this blog anyway) 'most frightening gold chart in the world' makes its reappearance.
This image is of a full page ad in the Seattle Times sent to me by subscriber Peter B, an economist and smart guy on the lookout for contrary indicators. I'd say this fits the bill.
Why does this kind of thing always come about as the dollar noise is at its loudest and risk of reversal at its highest?
Thanks Peter.
