by Chris Waltzek
The Silver Investor David Morgan and the host discuss the best annual start in the PMs sector in 35 years, according to The Economist magazine. Our guest expects the short covering bonanza to continue for a month or two as retail investors regain confidence and push their chips back into the market, to the delight of gold / silver aficionados. His work indicates a new bull market is underway – however, additional gains could be tame as investors slowly accumulate new long positions. Plus, the massive debt implosion, virtually insures better times to come for PMs investors. When gold is priced in terms of global currencies such as Candadian dollars, the gold bull market never ended. Our guest reminds the audience of the classic words of JP Morgan, “Gold is money and everything else is credit.” By this logic, dollars, pounds, euros, yen and yuan are all unbacked paper promises; only gold and silver are true wealth. Just as the BOE gold sales of 1999-2002 marked the end of the bear market, the recent sale of the entire gold stockpile of the Bank of Canada is a positive contrarian indication.