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Gold and silver prices have at last given investors of the worrying ilk a respite from their hand wringing.

October 10, 2011 – Gold and silver prices have at last given investors of the worrying ilk a respite from their hand wringing. It’s still rough going, but for the past few days it has looked like the worst is over. Gains have been modest, but gold seems to be settling in to a fairly tight band and silver is trying to regain some lost ground.

Although I’m not ready to declare that the game is afoot once more, I believe that these are strong signals that the markets have regrouped after shaking off the quick buck fever and are beginning to move forward with a more solid base of long-term safe haven investments. But that doesn’t preclude further panic shocks.

There may well be a few more rounds of exceptional buying opportunity as the prices reach the point where those of little faith will take their money and run. The fundamentals are catching up, however, and I doubt we will see any more extended periods of bargain basement prices for quite some time.

Tepid gains in hiring and feeble attempts to bolster optimism just don’t work any more. Too much is going badly in too many places. Throughout the developed economies central banks are shoveling cash into the boilers trying to build up a head of steam, but there is no hope of ever making the grade.

There is only one solution: let the engine roll back down the mountain into the station and load up on real fuel. Instead, they just shovel ever more furiously and they’ll keep on doing it until all of the cash is gone. From time to time they will manage to eke out a little forward progress, but it will no longer be greeted by the cheers of all aboard. They know that they are going nowhere.

Meanwhile an engine fueled by gold and silver sits on a siding, waiting to surge up over the mountain the moment the oversized train that can’t finally coasts silently by.

Shannon King

Senior Staff Writer – GoldSilver.org

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