by Hubert Moolman
The fundamentals for silver and gold are very strong, and with all the massive bailouts and stimulus, which have increased debt levels, they are just getting stronger. Until a significant portion of these debts is repaid or defaulted on, it would be foolish to talk about a top in precious metals.
The repayment of debt (or default on debt – which is more likely) will result in significantly reduced economic activity. Significantly reduced economic activity will have a negative effect on the stock market, which in this case, will likely result in a huge crash. For now, the stock market is defying the reality of the bleak economic outlook, but not for long.
It is these conditions (a deflating debt bubble) that will drive gold and silver prices significantly higher.
Why? Because this will not just be a normal type of reduced economic activity (recession), but one in which the monetary system as a whole is questioned and collapses (due to the excessive debt levels).