We took note of Silver Wheaton’s unaccustomed exuberance during the tutorial session earlier this week. The stock looks like it’s just starting to develop thrust. Could this be an early indication that mining shares will lead bullion prices higher this time around? If so, that would represent nearly as dramatic a shift as we are seeing in the bonds, whose decades-long bull market may be in its death throes. The logical implication is that inflation is about to return in a big way. Hard as it is for me, a hard-core deflationist, to believe this, I’m prepared to let the charts do my thinking for me. Regarding getting long in Silver Wheaton, I should have been paying closer attention when it bottomed near $23 in May. Still, it’s never too late, especially since the stock could be at $100 if silver prices are headed to new highs.
