Thus far in 2009, the S&P 500 and long-term Treasuries are down 8% and 6%, respectively. Even more of a concern and as shown in the charts below, both equities and bonds have recently dropped below their key 50 DMA levels. In this same period, gold is only down 2% and silver is about even.

It took a while but it appears investors are slowly gravitating towards the true safe havens - gold and silver. As this latest trend develops, expect the move in PM's to intensify quickly as these markets are relatively small. This explains the obsessive defensive nature of the gold cartel lately as they know their paper world is crumpling at an accelerating rate.

Cheers - VHF

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