6 Metals Plays Primed for Strong Gains

Focus: ETFs

Peter Way Image Peter Way Founder and CIO, Peter Way Associates

The gold and silver rallies have cooled off for now, but they’ll be heating up as the weather cools, observes Peter Way of Block Traders’ Oil and Gold Monitor.

The US of A, with its “supercommittee” nonsense, sets a horrible example for the rest of the world.

Particularly bad for the European community, which is quickly running out of time and the patience of its creditor-investors. That transformation from acceptance, even enthusiasm, to rejection and flight, is the principal key to investment value—for government bonds every bit as much as for IPO equities.

The “sovereign debt” paper of Syria and Egypt at the moment may not be considered a realistic part of even the junk-bond market. Easy to identify at the extreme, the issue of confidence is ever-present in all investments. It’s what generates much of the volatility in markets for securities. The spillover into precious metals markets is an obvious warning sign.

It is apparent that Europe and the euro now are in an “in extremis” condition. But what might it take to put the US Federal Reserve and the Treasury into the same situation? A failed bond sale, like Germany has just had—again?

The ten-year rise in gold prices, in dollar terms, is too persistent to be ignored, except at the investor’s peril. Concern over a possibility of the present US administration allowing itself to be dragged into a “save the euro” political position may strengthen that trend.