Comments & Outlook
The public has been getting an earful from the gold bug and silver crazy crowd in the past month and I’m getting sick of it. Look at the 1-month charts for gold and silver and you will clearly see the trend.
The rally in equities is based squarely on falling commodity prices, particularly oil. That is firming the $USD and putting downward pressure on precious metals. This scenario was painted in advance by me, and I alerted broad market short-sellers two weeks ago that they ought to consider taking profits ahead of the summer rally that I figured would be commodity-price based. I warned that the changes to commodity exchange margin requirements would have an impact. I also warned that with the HB&B earnings reports there would be a lot of smoke being blown by desperate executives, which has been the case.
I think you get the picture.