To describe the fundamentals of the gold and silver markets, or even predict its price moves, a coherent theory must look at the gold and silver basis.
The global economy is so screwed up right now that even a team of MIT eggheads using a supercomputer and petabytes of economic data couldn't predict where interest rates will be in 30 days, let alone two years out.
Total gold open interest at the close Friday exploded by 32,751 COMEX contracts, a very depressing number -- and I'm hoping/praying that it's spread related.
We have plenty of other problems and don’t need more, especially rising energy prices as the economy slows. Nonetheless, that seems to be what we will get.
