Quote:
Originally Posted by FakeNameChanged
I'm bullish on uranium and lithium right now, and would rather take that risk over a small start-up in a dangerous country. But I respect your knowledge on that type of business.
For some reason that I don't understand and has most economists scratching their heads, gold and silver have not reacted inversely to inflation. Looking at the charts I use, it looks to me like GLD is very close to setting a three-year low on their monthly relative strength(RSI), and if that happens along with a low on their MACD, then gold looks very bearish. Of course, if it stays in the same relative strength vs. the overall market, then it continues sideways to slightly down. It's been sideways for over 10 years already.
Silver has been sideways to mostly down over the same ten years. I've said on here before that silver seems to trail gold by a month or two. If gold does go bearish, silver will most likely follow.
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my only answer to that is you can measure the potential strength of the upcoming bull market by the length and weakness that preceded it.
that means that when precious metals decide to move north, it will be for a long time and have a more than major move in price.
as far as uranium is concerned, there is plenty of the stuff available right now in mines throughout the world, but once demand picks up there will be shortages and uranium doesn't get recycled yet. the majority of precious metals are only used as a monetary value. when you bet on precious metals, you are betting against governments. when you look at world leaders you might come to the conclusion that someday you are going to need precious metals.
