Saturday, January 24, 2009

Long Term Bond Trends Strongly Suggest Gold and Silver Ownership

When a government starts to big time trash its fiat tokens, the world wants a higher interest rate to make up for the bill's, note's or bond's decreasing purchasing power. If interest rates are really taking off because the world fears big time devaluation of the government fiat token that the debt is denominated in, so will the price of gold and silver denominated in the same fiat token that the debt being trashed is denominated in.

A 30 year bond chart



A 3 year bond chart



A 3+ month bond chart


The price of long term US Treasury bonds are up near the top of their long term channel. It does not look like there is anywhere for them to go but down. More wind at the back of the gold price and the silver price.

***






***







Opps! Looks like the world does not much like US debt. Great for the price of gold and silver.

1 comment:

[email protected] said...

My humble opinion why gold, oil shot up with little reason on Friday ....because of China's anger at US blatant accusation of RMB manipulation on Thursday. Perhaps it was coincidence or a way for China to demonstrate it can support or switch out of US$. If a high gold price can result in China's gold reserve appreciating faster than the depreciation in its US$ assets holding, then it is in China's interest to buy gold to the hilt