Wow, what a month it's been. Of all the options I outline in my last commentary, Congress chose "Bullish Gold Case #2:" they raised the debt ceiling without any significant cuts to federal spending. This agreement sparked not only a downgrade of US credit by S&P, but also an immediate rush into gold that brought the yellow metal's average comfortably above $1750 mark, and saw it breach $1900.
Silver held around $40 after making up its losses from the summer doldrums last month. I think it is well-priced at that level and will likely see gains as we head into the autumn buying season. The complicating factor is that silver is both a precious metal and an industrial metal. Therefore, in times of panic, silver tends to underperform gold. Its just a matter of time until investors realize that emerging markets are going to keep growing without the US and Europe to consume their goods. - in Schiff`s Gold Report
Related: IShares Silver ETF (SLV), Hecla Mining (HL), Silver Wheaton (SLW), SPDR Gold Trust ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), Novagold (NG)
Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.