Stay the Course

When I look at the fundamental picture for gold and silver, I have absolutely no worries about the longer term picture and where prices are headed. They are going higher; way higher than where gold and silver currently trade. The accelerating evidence for this is so obvious to me that I wonder how other intelligent people cannot understand where this will all lead. Just a few of the many glaring warning signs that stick out to me lately are the following:

• The national debt of the U.S. as of June, 2007 is $8.85 trillion and growing at an alarming rate of $1.38 billion a day

• The number of homes entering foreclosure in the U.S. will easily top one million in 2007 and continue to rise in 2008

• The U.S. real estate market is headed for trouble • Consumer confidence is clearly falling

• The U.S.Dollar is falling against other currencies despite the continued attempts to prop it up. The latest currency to rise against the dollar is the yen That being said the shorter term scenarios are much more difficult to predict and often cause considerable anxiety for investors when gold, silver, and the mining shares have a sell-off as we are currently experiencing in the market.

Why is this happening is the question I always get as we go through one of these periods.

Greg McCoach

June 27, 2007