February last year was dismal for precious metals, but there was no evidence of seasonal weakness this year as several milestones were passed.
The commodity super cycle is still intact and should remain dominant for another twelve to eighteen months. There will be periodic monetary tests from China, but none from the old industrial countries until late 2012 or 2013. The true danger will come when the old industrial nations once again perceive inflation to be a danger. The earliest possible time for inflation to be a policy concern is 2013.
“Gold is not a commodity. It is not volatile. It is not an investment. Gold is money.”
The ratio for SPDR Gold Shares has slowed significantly in recent days, and appears poised to break toward the 1:1 mark again.
The best performing metal over the medium term is a surprise. Lead has gained 155% since 2008, far better than any other hard commodity.
Data shows no clear signals which suggests the balance between inflation and deflation is at the forefront.
ST. LOUIS (MineFund.com) — Against a backdrop of weak fiscal, economic and investment conditions, few would have bet that gold would have taken the hit it did over the American holiday weekend.
The gold price is expected to average higher than $1,200 per ounce for June. That’s the first new record since January. Adjusted for inflation, the gold price still has a nearly $650/oz gap to close in order to vault the all-time record high set in January 1980.