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Message:: [QUOTE="Santinidollar, post: 3135891, member: 75866"]Right now and likely over at least the short term, there simply isn’t anything to prop up gold prices. Inflation — using the measure employed by the Fed — is tame and the economy is strong. Despite several rate hikes, the US 10-year is still below 3 percent and bond prices are stable. When you look at the overseas 10-year rates, you can quickly see why demand remains high: 2.85 percent is far and away the best deal being offered. Stocks take in money, Treasuries take in money and PMs prices suffer. We are long overdue for a cyclical recession. And a soft to lousy economy does NOT guarantee higher gold prices. Several years back, gold and silver jumped because of a widespread EXPECTATION that higher deficits and the Fed’s near-zero interest rate policy would trigger hot inflation. As we know, that didn’t happen (though quantitative easing may have staved off deflation). PMs prices fell back to earth. In the previous economic crisis, in the early 1980s when PMs jumped sharply, we were dealing with double digit inflation — a totally different scenario. My point: I think a lot of younger folks who are buying PMs are operating under the mistaken notion that a bad economy will automatically increase prices. I disagree. The deciding factor will be inflation.[/QUOTE]