What's Changed?

by Bill Bryan, MarketPulses.com | April 2, 2008

The Metals, both Gold and Silver, as well as the entire commodity spectrum in recent sessions have been/are being pounded for hefty losses as crimson litters the landscape.

It is apparent that the entire complex now seems to be taking the "elevator down".

What's our take on the carnage?

Well, we've referenced on numerous recent occasions that participants in the metals/commodities spectrum should expect some type of consolidation/reactive action, particularly after the powerful march into greener pastures since September '07 and such is exactly taking place.

While the recent action may have many on edge or perhaps even throwing in the towel, we view the landscape in an entirely different manner.

So, what's changed? Short-term interruptions/hiccups aside, Nothing has changed from both a Fundamental and Technical viewpoint to alter our view with respect to the long-term secular bull. Inflationary (potential Hyperinflationary) pressures persist via the relentless expansion of monetary supply to the tune of nearly 17%. The $USD remains in I.C.U on life support apparatus despite its recent �uptick�. Furthermore, when one views the weekly three (3)-year charts below, such recent action merely depicts a pause in the ongoing Phase II uptrend which we perceive as overdue; not surprising and perhaps most importantly, healthy.

Additionally, both Gold and Silver remain well perched above their moving averages which suggests that the uptrend remains comfortably in place.

We remain in a Super-Cycle stealth mode. Thus, we find the lower prices appealing/on sale; an opportunity so to speak and will continue to add (shop) to our favorites, both physical and shares, predominantly Juniors.

The question we pose to readers is the following: Will you allow yourself to be "bucked" off of the bull and left behind or, will you pick yourself up off of the ground, dust off and remount?

Contact Information

Bill Bryan | Boston, MA USA | Email | Website