The chart below looks at the Gold & Silver mining index, dating back to to the early 1980’s.
The Index lost over 80% of its value from 2011 to the 2016 lows, where it looks to have created a double bottom (2000 lows).
CLICK ON CHART TO ENLARGE
The index has bounce nicely off the 2000 lows that it hit earlier this year. This bounce took it up to a test of triple resistance at (1).
Nice action of late as this key mining index is now hurdling over this resistance cluster, breaking through it.
This price action is a positive one at this time, for this 30-year old index.
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I hear a sound in the distance that cannot be seen, like the Langoliers from the Stephen King book. Food is beginning to taste-less. The mass of objects in our grasp is beginning to evaporate. Paper money in our bank accounts and wallets are now electrons. That sound in the distance is the sound of $20T in debt. Marching with it is inflation, grinding ever closer with infinitesimal stride. It will be inflation that pays the debt. The price of gold and silver is the only tell.
It’s not gold or silver in its own cocoon. It’s the places where inflation has begun to manifest. It’s started with housing, particularly rents. Next will be food. Last will be gasoline prices.
Add to this the “tiny house” phenomenon and in 20 years you have Edward G. Robinson’s lifestyle in “Soylent Green” where that commodity will be the new gold. You pedal your generator long enough to make the trade and log off.