The ongoing euro crisis, to bail out Greece or not, the 50% haircut, the Euro bond, the new rescue package, all these things are leading us to a stronger dollar which in turn is pushing the price of silver down. Europe has not yet agreed to a solution but it will most certainly involve more stimulus and more Fed involvement. With the dollar strengthening the Fed has the cover to send off more dollars to Europe. Gold and silver are on sale and will remain on sale until people realize that the risk off trade should include buying gold and silver. Right now we are stuck in a pattern of dollar up, market down, gold and silver down followed by market up, dollar down, gold and silver up. This will soon give way to gold and silver going up in both scenarios as gold and silver are the ultimate safe havens that provide protection in both inflationary and deflationary environments.
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