Why Gold And Silver Are Bullish, By Sean Brodrick

Thanks, bigfredd.

I've been saying this for a while. I can't fathom why people would say silver is in a bubble? Look at silver's performance during the past 10 years or so vs silvers performance leading up to the '80 peak.

This bull market has seen a nice and relatively steady rise vs the VERY SHARP peak it reached in '80. '80 was a bubble. We are nowhere near bubble status yet.

Thanks for the link, BiggFredd. I agree with the message in the video and bookmarked that site for further reading / viewing.

Also agree with Mitch on this. Silver is not in a bubble now... but the dollar sure is. The dollar is very weak now but it has not sunk to its real level of value because, well, it IS the dollar! If I had any confidence in the Federal Reserve or the US government to manage the dollar properly, I would not be collecting bullion now. They have shown no interest whatever in strengthening the dollar, only in weakening it. I understand why they are doing this but believe that the cure they seek is worse than the disease. Since I cannot exercise any control whatever over the dollar, all I can do is protect the savings that I have by investing in things that do not depend on government competence to have and maintain their value... and dollars are definitely NOT it!

, Silverhawk.

How Bernanke can go on TV or in front of congress and say with a straight face that the rise in commodity prices is not linked to the falling value of the US dollar is simply beyond me. I'd be willing to bet money that he also does not believe that printing trillions of extra dollars has anything to do with the falling value of the dollar! Does he really believe this nonsense or does he know the truth of it and is attempting to cover it up? Either way, I hope that the next Fed chief does a much more credible job.

Thanks for the link biggfredd - interesting perspective.

He either flunked econ 101 (inflation is caused by more dollars chasing the same amount of goods and services) or thinks we did.

When the price of almost everything rises, that's inflation, I don't care how you analyze or sugarcoat it.

Price of sugar (and use of HFCS instead) is caused by gubmint. Sugar is TWICE as expensive in the US as anywhere else in the world. Caused the largest candy maker to move from Chicago to Mexico.

Coffee has doubled in price since last year, and Starbucks is trying to push those prices up, without running off the coffee heard eh. They were talking about that today after the big news conference. I think we will see this trend continue form the stores to the pumps, to every other little creature comforts taken for granite every day....

Yes, that was far enough over the top to be funny alright. Problem is, none of the things that he mentioned considered that a dollar saved is about $0.022 in real spending power after a couple of decades of routine monetary inflation.

Gold has not always been a great investment and most people, even serious gold bugs, will usually admit that. Personally, I am a firm believer in diversification in my investments and not buying 5-10% PMs for my portfolio is an act of omission.

We have $115 oil today not because there is a shortage of oil (our oil storage facilities are awash with the stuff) but because the dollar is worth less today than it was 6 months or a year or two ago. Those of us who do buy some PMs are well aware of the fact that a ASE or an AGE will still contain an oz. of PM tomorrow or next year, no matter what the government or the Fed does or fails to do.