Our kooky precious metals bulls – – not that I don't love 'em, some of my best friends are kooks – must be getting really frustrated. Precious metals have had every reason to rally. The storyline is simple enough to follow: (1) precious metals represent the only true store of value; (2) the US has "printed" up trillions upon trillions of dollars of "money" whose only value is the perceived value of a public accustomed to fiat money (3) the US, like so many countries throughout human history, will see inflation take hold and cause the value of real money to soar.
That storyline seems to have peaked on December 3rd. In spite of so many assets – like equities and energies – continuing the charge relentlessly higher, precious metals have been pretty much a dud. Take note of the trendline for GLD and notice how it has been getting brain damage conking its head against that failed line.
