by Jeff Nielson
Bullion Bulls Canada
For 6 ½ months; readers have been warned that the anemic advance in gold and silver prices over this period of time was/is a Fake Rally. The arguments in favor of this conclusion are almost too numerous to list.
a) Gold and silver are currently undervalued by roughly an order of magnitude, and in the case of silver, closer to two orders of magnitude. In any legitimate rally, the upward slope in prices would have been much, much steeper.
b) In a legitimate rally, silver always outperforms gold. Yet despite silver being undervalued versus gold by roughly an order of magnitude, the price of silver lagged the price of gold originally, and has barely kept pace throughout this sluggish “rally”.