What the Market's Mayhem Means for Gold and Silver
During the afternoon hours Thursday I took part in a live chat session on The Motley Fool's home page, and it became clear folks out there had a lot of questions about gold and silver in relation to the deep market selloff. The following article represents my effort to paint as broad a picture as possible of the outlooks for gold and silver on both the near-term and longer-term horizons. It's never easy to touch upon everything you want to say within the space alotted -- and in this case I could have written a tome -- but all the same i hope the result is helpful to a broad swath of Foolish investors looking to make sense of gold and silver.
Thank you in advance for reading, reccing, and responding with your thoughts, and please don't forget that every rec, tweet, like, e-mailed link, etc helps an article like this one to reach a wider audience. :)
"That latter point is critical to understanding the resiliently bullish outlook for gold and silver. One might say it's the primary puzzle piece around which all others are arranged. You see, the still-deepening structural imbalance within the world's leading reserve currency (the U.S. dollar), together with the acute debt distress across the Atlantic blazing a similar trail for the euro, simultaneously herald the unavoidable devaluation of those two major currencies. Also, these conditions are, in turn, effectively forcing nations around the globe to engage in deliberate, competitive devaluation of their own currencies to defend their respective economic growth potential."
"In the final analysis, the broader story for gold and silver is all about the resurgence of alternative, time-tested monetary instruments to step in as viable safe havens to an increasingly sour-tasting array of competing paper currencies and sovereign bonds. Because public debts continue to expand around the world, and paper currencies continue to devalue en masse, I believe the long-term upward trajectory for gold and silver remains etched in -- well -- metal."