Friday, December 09, 2011

Clive Maund Is Excited about Gold and Silver Again

8 December 2011

Clive Maund is excited about gold and silver again (click here and here or here).

The implication of his present very bullish call for the precious metals is that things will work out favourably for the Euro at this particular juncture in history, but that it will be an inflationary solution (despite what the new European Central bank President, Mario Draghi, has been saying lately).

That is, the guys who typically make the smartest bets on the direction of global financial markets are going double or nothing on the Euro right now.

If there is an inflationary solution to the problem, look for gold to pass the $2000 level in the wink of an eye.

Mr. Maund's December 4, 2011 gold chart follows:

If there is more dithering, look for a massive and immediate crisis that will force a response - as, if things go too far, there will remain no reasonable way to fix the Euro. (The gold price will rise more slowly in the second scenario.)

That is, Humpty Dumpty has not yet toppled off the wall. If he does, it will be a chaotic scene for months and/or years to come.

14 January 2012: Mr. Maund changed his mind on this topic. However, I haven't. He worries about deflation. I don't.