Goldbug Consensus: Buying Opportunity

As explained by Peter Brimelow in Marketwatch, gold bugs have come up with a few reasons for why the gold bull market is still intact. One of them deals with silver, which hasn't plummeted to the extent which gold has. The case is made with comparisons to the past: the gold-silver ratio rises, not falls, during a precious-metals bear market. In the latest spill, it's fallen.


One example of a long-term bull turned short-term cautious is Minyanville's Przemyslaw Radomski, who writes that gold and gold stocks are in for some rough rides in the immediate term. He reiterates his case for gold going up in the long term: high sovereign debt financed at short terms. Particularly, U.S. short term debt is above the levels that the Guidotti-Greenspan rule would deem safe.