MTECHTIPS;-Moving out of the Dollar into Gold and Silver

MTECHTIPS;-Moving out of the Dollar into Gold and Silver

In terms of silver’s investment demand, the bullish metric at Sentimenttrader.com is currently at 39 percent. This is a low point that has not been seen since the mid-1990's.Furthermore, The Hulbert Gold Stock Newsletter Index or HGNSI recently fell to a new low of 43.8 percent, which is a record by a long shot. What that low reading indicates is that, of the stock newsletters that include coverage of mining stocks, 43.8 percent of them are now recommending short positions in gold stocks.If these indicators are not yet signaling a bottom in precious metal prices, it really has to be close.These lows are further exacerbated by undervalued market prices that are pushing suppliers of precious metals to sell their stocks below the current cost of production, there by resulting in further destruction of an already devastated mining sector.Remember, only fifteen or so primary silver mines remain after decades of artificially low prices created by what, in effect, was a massive lobby to off load cheap silver into the market and the use of paper futures contracts that can be easily manipulated by money printers to maintain low commodity prices.Confidence dipped considerably in the wake of the MF Global disaster, Peregrine Financial bankruptcy, and the LIBOR scandal. Confidence in the Obama administration is now also challenged by recent controversies, such as the IRS’s added tax scrutiny for conservative groups and the Justice Department obtaining several months of phone records for Associated Press journalists.

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