Gold and Silver Leaning Slightly Bearish and Hinting at Deflation

Gold (GLD) is now outperforming silver (SLV) today. This is a deflationary and bearish signal for stocks. If the markets believed central bankers could print their way out of this, silver would be outperforming gold. GLD is up 3.41% and SLV is up 2.84%, so there is some uncertainty and a tug-of-war taking place between an inflationary and deflationary outlook. If GLD is on track to beat SLV today, and over the next few days, we would be even more likely to raise additional cash. The central bankers want to avoid a deflationary spiral. Tomorrow, the Fed will try to flip the dynamic back into the inflation camp.