IS IT TIME FOR GOLD/SILVER BULLISH RALLY TO END IN A WEEK ??

No Double Dip Recession

This year's historic price advance for gold futures is providing a very clear signal that there will not be a double dip recession this year or over the next few years. In the 2008 recession, the price of gold fell approximately 35% on the belief that the world's major central banks would not be able to re-inflate their economies anytime soon and there would be a deflation problem. This, in fact, proved to be the case. However, in the current period of economic weakness, the price of gold is making all time highs, which at first glance, appears illogical. Our analysis is telling us these historic gains in the gold market, that we are seeing now, is because the world's major central banks will be successful in their efforts to re-inflate and that there will not be a prolonged downturn in the global economy.