Gold and Silver: If Not Up, Then Down

Gold (GLD) and Silver (SLV) could not go up even as Ben "Helicopter" Bernanke finally lived up to his name. Gold put in a major intraday reversal the day the Bernanke announced $300 billion in debt monetization... and then quickly faded. GLD has now broken a rising trendline.

If not up, then done.

The fact that Bernanke actually decided to monetize debt should be interpreted as a sign of fear and extreme economic weakness. Clearly the Fed knows something. They've stared into the eyes of the Deflation Monster and blinked. If there was even the slightest possibility of inflation the Fed would NEVER dare monetize any debt. The fact that they are probably means that the global economy and the global financial system have actually deteriorated further. The prolonged deflation threat is now very very serious.

It may be time to ADD to the short Gold and Silver exposure.