3 Trends That Rule the Precious Metals Market, Part I

NEW YORK (TheStreet) -- It is bad enough watching the talking heads of the mainstream media undermine the precious metals sector with their insipid and invariably flawed analysis. However, what is positively infuriating is when these drones manage to influence the market by parroting "fundamental" factors, which, at present, are simply irrelevant.

Understand that in normal markets (and normal market conditions), there would/should be a host of variables that influence the precious metals market -- as with any other market. However, what has been completely lost in all the white noise coming from the mainstream media is that conditions have literally never been less normal.

Specifically, not only our markets but our entire economies have been perversely warped through pursuing (or simply allowing) the most extreme policies and the most extreme behavior in our markets in all of history.

These extreme policies, and the extreme behavior they have spawned, now totally drown out all other factors, even many of the most basic elements of supply and demand. Indeed, the ultimate proof of the cluelessness of media drones (and the mainstream "experts" who feed those drones) is the fact that none of them have even the slightest awareness of how economic fundamentals have been skewed in such an extreme and flagrant manner.

The purpose of this piece is to identify the three policy/behavior trends in our economies and markets today that either subsume other factors or simply render them (at the moment) irrelevant with respect to gold and silver. Understand that because the second and third trends are derivatives/consequences of the first trend, there will be considerable overlap here, so readers are encouraged not to become side-tracked by issues of semantics. Those three trends are:

1. Excessive money-printing

2. Gross misallocation of capital

3. Long-term destruction of the supply chain

Excessive Money-Printing