If consumers go out on a limb and spend big, the groundwork will be laid for a massive expansion of the M2 in 2011.
There are four major pieces to the ebb and flow of precious metals prices. All of them are as interrelated as
much as they aren’t, and all of them are equally important in the current prices of any precious metal.
The traditional rule that gold always trades within a range of 20 to 70 times the value of silver may quickly be tested as the financial markets lose their fear and again start investing in stocks, bonds and other investments.
Whether or not the real estate market pushes the whole economy into depression has yet to be seen, but it is absolutely certain that we will see rampant inflation. The case for owning physical gold and silver has never been stronger.
In recent months, and ever since the financial crisis of 2008, precious metals and silver prices have had a generally strong correlation with the trend in the VIX.