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SILVER
VS. GOLD
by Gary
Tanashian
biiwii.com
March 13, 2007
Coincidentally,
two new articles appear on Biiwii.com's
Analysis page this morning. The first is Steve Saville's Silver
versus Gold which concludes that the more monetary metal (gold) will
outperform in times of falling confidence but silver may well outperform
over the long haul. The other article is The
Need for Speed by Captain Hook, in which the good Captain forecasts
continued short term outperformance in silver vs. gold, implying
continued inflationary (liquidity) policy in this 3rd year of the
presidential cycle.
I am sitting in the contraction camp or put a better way, the illusion
of contraction camp. Despite all the usual suspects crying "da boyz
is on da job!!", "PPT won't allow even a 2% correction!!"
and "the markets are rigged!!" I believe the various central
banks would like nothing better than a little shot of the fear of god
put into casino patrons world wide. Overall, silver looks bullish vs.
gold, but a drop down to the dotted green line would likely come in
concert with another one of those "rut rhoh!!!" moments. The
kind of moment when the public would perceive the Huey commander as its
best friend. And that states the case for gold and
silver's next leg up. This is a long term chart so try to avoid
micro-managing this dynamic on a daily basis. It is wise to keep a
general framework in mind as you go about the daily and weekly twists
and turns of the financial market obstacle course.
© 2007 Gary Tanashian
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