Gary Savage is one of my favorite bloggers on the web, and he's been a raving, jumping-up-and-down bull on precious metals for as long as I can remember. He also happens to have been very right.
The move higher by gold and – – far more dramatically – silver – has been breathtaking. ProphetCharts has data back for many decades on commodities, and below I've chained together the futures contracts for gold and silver to give you an idea as to the nominal cost per ounce of these two more-precious-than-ever metals.
Congratulations to those who have ridden this rocket ship. As Gary has often said, this is the one solid bull market out there, and it's made PM bulls plenty of cash – for some, in the hundreds of percentage points. The flip side of this, of course, is that soaring precious metals aren't exactly harbingers of wonderful economic times ahead. Perhaps you'll recall what the late 1970s/early 1980s were like, the last time this kind of mega-bull market in metals happened.
As for equities, I have little other commentary to add. In spite of today's (disappointing) reversal higher, the indexes are still below my lines in the sand, so I remain short, albeit only about 55% committed. With all the problems in the world today, the market is doing a remarkably good job climbing the proverbial wall of worry. That's it for me today. Good night.
