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Eric,

Wanted to Let You know I visit Your Site many times during the day and have to say keep up the great works.Our Alice in Wonderland Economy is mind blowing and Guys like You and Jim give Me confidence, everything I have is in Silver/Gold assets. Thanks for sharing Your Paintings.

Thank You
Bob

Bob,

You're not alone. The strength of convictions from expert to novice will be constantly challenged.

Today's world of credit, electronic transactions, fancy structured products, media driven rhetoric, etc. have all contributed to marginalization gold and silver as a barbaric relic since signing of Presidential Executive Order number 6102 in 1933. As the old saying goes, you can fool some people some times, but you can't fool all the people all the time. As the depressionary box (see chart) wears on and hemorrhage phases (2001-2003, 2008-2009) repeat, people have begun to rediscovered sound money’s role in maintaining and protecting financial discipline.

Those expecting today’s latest and greatest liquidity-based recovery to provide the foundation for the secular advance, and placing their money according to that assessment, are likely due for a rude awakening. The debt burden of the previous secular expansion has yet to be liquidated. Credit market debt as % gross domestic product not only remains well above the second Great Depression highs but also well-contained within the secular up trend (see chart). A combination of debt reduction and devaluation must break this up trend at some point. Unfortunately, no amount of “save me” policies or socialistic programs designed to create the next great society will buffer the pain involved during the transition from a debt to savings foundation. A savings foundation is necessary to spawn the next secular economic advance.

Thank you for your kind words and support,

Eric