Cash is still king for China’s nation of savers. If just ten percent of Chinese savings goes to gold/silver in physical form, then the new hyper bullish trend could be unthinkable.
In a world that is increasingly on edge, the safe haven is gold. We appear to be in the throes of a powerful bull market that may have further to run. Pullbacks can be healthy. Runaway moves not so much.
Gold is responding to the growing political chaos, a slowing economy and still sticky inflation (stagflation?). Gold has been number one this year and the rise does not look finished yet.
Gold’s past five week’s have been nothing less than marvelous. As for Silver, the settle yesterday at 43.37 was her highest daily close since 22 August 2011 as well as her highest weekly close since that ending 25 April 2011.
Previous similar episodes were soon followed by combinations of pullbacks and sideways drifts. Those high consolidations gradually rebalanced overextended technicals and sentiment.
