Sean Boyd continues:

“As you and Jim Rickards covered in your interview, if you are talking about the proposed creation of $100 trillion of new credit it is not fixing the problem, it is delaying it.  We see continued uncertainty, it’s easy to propose a massive bailout that doesn’t really deal with the underlying issues, this would just defer the problem.

I think investors have to take a step back and look at the big picture.  We had the love affair in paper in the late 90’s and ever since that ended we have seen a move to hard assets.  Right now we are just seeing investors and funds trading around positions inside this continued consolidation in gold and silver.  We have seen this so many times in the last 5 or 10 years.

Some have been taking profits in both metals, but particularly in silver you may be seeing some miners doing some forward hedging.  We don’t do that, but you might have been seeing some byproduct selling and some hedge fund selling in silver at the $30 level which accounted for the strong resistance in that area.

When $1,400 falls we will really begin to see the next leg higher in gold.  At that point $2,000 is very much in the cards within the next twelve months and during that run silver could very well double in price, so it should outperform.”

Sean Boyd is one of the most respected mining executives in the world.  Boyd has been in the business decades, but he did not let the horrendous bear market of the 80’s and 90’s rule his thinking.  To his credit, he is one of the few mining executives that understands this is a massive, secular bull market in gold and silver.

Eric King

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