However, I do expect the lows of this week to be re-tested in both metals at some point, if not this month (a bounce seems likely), then next. And frankly, at this point, I cannot in good conscience write this post, which will be read by millions of wide-eyed investors working hard to put food on their families, without acknowledging the prospect that the bull market in gold may be over. It seems mind- boggling that this proposition could be true, in the face of such pervasive corruption and arrogant parasitism, such hubristic folly and dysgenic idiocratization, but a continued move down to the $800's (and a year of $1000 as resistance) after a little dead cat bounce, in conjunction with new stock market highs and unemployment numbers down below 7%, wouldn't really surprise me.
There's been massive very-long-term chart damage on so many charts we've been looking at, e.g. stocks vs. gold, and this one:
Here's one of many academic articles offering a big-picture perspective to what's going on:
Financialization of the global economy
The instability of the world financial system, starkly revealed in the recent debacle, is not the only problem it poses. Its secularly increasing dominance over the real economy is in itself a phenomenon that needs examining. The article traces the source of this increasing dominance not just to the increasingly leveraged and increasingly incomprehensible forms of intermediation between savers and those in the real economy who need credit and insurance, but also to the increasingly universal doctrine that maximizing “shareholder value” is the sole raison d’être of the firm and the promotion by governments of an “equity culture.” Some of the social consequences of financialization are exacerbating inequalities, greater insecurity, misdirection of talent, and the erosion of trust [emphasis added]