Capacity Utilization update
The Capacity Utilization rate in the US for total industry (Dec 2011) was released today at 78.1%. This means that we're still in an uptrend, which is bullish on gold and silver.
Speaking about silver: PSLV (Sprott's silver trust) today dropped almost 10% today, I'd say this is a very good price to start accumulating physical silver.
Historically when capacity utilization rates go to 80%, a year later we get a spike in inflation. So there is a high correlation between capacity utilization and inflation.
If you don't know what capacity utilization is, you can follow these two videos from Salman Khan on the capacity utilization - inflation correlation here:
Speaking about silver: PSLV (Sprott's silver trust) today dropped almost 10% today, I'd say this is a very good price to start accumulating physical silver.
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| Capacity Utilization (BullandBearwise) |
Historically when capacity utilization rates go to 80%, a year later we get a spike in inflation. So there is a high correlation between capacity utilization and inflation.
If you don't know what capacity utilization is, you can follow these two videos from Salman Khan on the capacity utilization - inflation correlation here:
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