Short-term pain, long-term gain

A technical correction in gold and silver is shaking out weak holders, providing a stronger base for the next bull move.

There are strong signs that the credit bubble is beginning to deflate. A dramatic collapse in cryptos is leading the way, followed by momentum stocks on NASDAQ. This is bound to cause widespread liquidation in all financial asset categories, to be followed by the consequences of widespread portfolio reallocation away from risk. Financial violence is all part of the final act for fiat currencies as they shuffle off the stage.

A perfect storm, maybe. It is the ultimate justification for gold and silver stacking. But navigating through hurricane conditions may require considerable nerve.