The stock market has gone mad, but there is sanity to be found in gold and silver investments.

March 23, 2011 – The stock market has gone mad, but there is sanity to be found in gold and silver investments. It is a tribute to the hard work of Wall Street insiders that such a simple truth continues to elude retail investors.

For a brief moment it looked as though market trade were regaining a modicum of sensibility, but now there is a resurgence of 2010’s frantic risk-on/risk-off mode. Individual investors, unable to make sense out of irrational market movements, are looking to each other for clues about where to go. They follow the mob, but mobs run without purpose, changing direction at every perceived threat, and go nowhere.

Some investors will stop to pore over the mountains of economic data to be released this week hoping to find anything that will shed a little light. But the data will prove useless because their understanding of how the markets work is based on fundamentals, and the fundamentals are no longer driving the market.

When the market behaves according to the fundamental laws of economics everyone from the elite insider to the casual household investor is playing on a level field. But today’s stock market isn’t about equal opportunity, it exists for the sole purpose of fleecing the individual investor. So insiders just changed the rules.

Today, giant funds built on complex derivatives influence market movements more with convoluted logic than with reason. ETF holdings representing enormous shares of markets give their managers the ability to direct movement at will. With powerful computers insiders keep constant tabs on data unavailable to individuals and they use that information to make instantaneous trades.

It wouldn’t be like that were it not for the Fed’s interference. Until such time as the government bows out and lets the market return to the fundamentals, the safest place to put your money will be in gold and silver.

Shannon King

Senior Staff Writer –

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