The Gold Report: Central banks in other countries are accumulating gold. Private investors in China, Abu Dhabi and Dubai are also acquiring physical bullion. Perhaps this bullish market will stimulate the precious metals industry.
Jay Taylor: I think that is right, Sally. People in those countries recognize that if they put their savings into the local currency, it could be gone tomorrow. They understand that gold and silver are real wealth. Americans are not that smart. We have been told to trust our policymakers, and most Americans do.
I think there is bullish case to be made longer-term gold, although we are in for some tough sledding in the gold markets.