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After the gold/silver ratio broke important support in the 68-69 area, it knifed down all the way to 61.7. The ratio has now bounced back up to test over-head resistance. I expect this test to be successful, and that the ratio will once again move lower.

Gold has climbed higher as expected. Both precious metals now look ready to make new multi-month highs, but it is becoming increasingly clear that the gold cartel is pulling out all the stops to try keeping gold from climbing above $1,000.

Gold and silver have climbed higher as expected. Both precious metals now look ready to make new multi-month highs.

I continue to recommend that investors stay out of the stock market (except for my recommended stocks). Continue to hold ‘gold-cash’, not ‘dollar-cash’, thereby keeping your money safe and sound in bullion until stock prices fall to more reasonable levels when measured in terms of gold. I do not have any trading recommendations at the moment.

A number of key factors have fallen into place over the past couple of weeks. Unfortunately, together they increase the probabilities that the US dollar is headed toward hyperinflation.

It has taken a lot of patience, but the gold/silver ratio finally sliced through support at the 68-69 area. The ratio has clearly broken down, meaning that silver is now outperforming gold.

This week Bill Murphy and Chris Powell, co-founders of the Gold Anti-Trust Action Committee (www.gata.org), will be in London, England. Their trip is part of GATA’s ongoing effort to raise awareness of the gold cartel and its surreptitious intervention in the gold market.

Markets always require vigilance and patience, but sometimes they demand even more. They sometimes require extraordinary patience. We are at one of those moments in time with regard to gold and silver. There is every reason to be bullish here about the prospects for both precious metals, both over the long-term and short-term. The purchasingRead more