Stocks are now enjoying their longest bull market in history as the economy marches toward the longest recovery ever. Despite this “rosy” situation, gold is up $207 from its December 2015 low and silver is up $2.00 over the same time.
Yet the metals’ price action is given little to no attention in the financial media. Whenever the metals are ignored, they usually continue higher.
Not to be missed is that this recovery is the weakest of the last 11 recoveries. Actually, it’s only a little weaker than the recovery that preceded the 2008 Great Recession.
And, just as important, the business cycle has not been repudiated. So, sometime in the near future (this year?), stocks and the economy will turn down.
The piper must be paid for the trillions of dollars that the world’s central banks have forced into the market. Not of all of that money has been profitably invested. Some had to have been put into what Austrian economists call “malinvestments.”
When those malinvestments start to surface, stocks and the economy will turn down. Stocks will lead as they are “forward looking” and fall before bad economic results are posted.
Metals investors need to continue to hold, even add more. After all, stocks are just short of all-time highs as the economy shows signs of weakening, and gold is up only 25% from its 2015 low and silver is up 15% from its 2015 low.