- This is another week of bad economic data that most people have ignored
- The stock market was up this week; the Dow closed up 1.8% on the year
- I don’t know if the Dow was rising in spite the bad news or because of it
- The bad news means the economy is weak and corporate earnings are not there, and there are high multiples
- But of course, if the economy is weak, that takes the Fed out of the rate hiking game and I think puts it into the rate cutting – QE4 game
- So the market is caught between the opposing forces of cheap money and falling earnings on the back of a weak economy
- Gold was actually down on the week; it started off the week strong, then Thursday it got hit pretty good and today it recouped some of its losses
- But the standout was silver
- Silver was up almost 6% on the week; this is a new high
- Silver closed at the highest close of the year
- In fact, silver was strong with gold on Monday and Tuesday and when gold sold off on Wednesday and Thursday, silver really held up
- That’s a good sign for both gold and silver
- I was on CNBC.com this week and I meant to say something about silver
- They’re not even talking about silver in the mainstream media so they’re missing an even bigger move
- They’re acknowledging that gold’s going up but they’re not even looking at silver
- I mentioned on an earlier podcast that a number of people are shorting silver and buying gold because they saw the breakout to new highs on the gold/silver ratio and they wanted to jump on that trad
- I thought that was the wrong thing to do
- To me, seeing new highs in that ratio in favor of silver made me want to buy silver, since it’s as cheap as it’s been relative to gold
- If you like gold, just buy it; don’t short silver because you could turn a winning trade into a losing trade
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