by Dave Kranzler, Investment Research Dynamics:
I had an interesting dialogue with a couple of long-time colleagues about this commentary by Wall Street On Parade. The Martens do an admirable job exposing the corruption on Wall Street, the Fed and Congress. But they exhibit a profound misunderstanding of the architecture of the global market for gold and silver. In the title to that article, the Martens suggest that “the typical safe havens of gold and t-notes are losing money.” Well, yes all flavors of fixed income securities are losing money because that’s how bond math works when interest rates and bond yields rise. However, the Martens fail to understand that the gold and silver market is bifurcated.