David gives an excellent 15 minute or so summary of the global macro picture and why he thinks that the US Dollar is strengthening and, in the short term, will probably continue to rally against other currencies.
However, David is only short term bullish on the US Dollar. Long term, he thinks the US Dollar along with many other fiat currencies are going to be devalued perhaps in a coordinated way by central banks to deal with a global debt problem that continues to get worse.
David thinks that in the short term gold and silver could go lower based on a number of factors, but as stocks and currencies (especially the US Dollar) fall gold and silver will rally very strongly.
Jason suggests that if gold and silver continue lower for a few more quarters and oil prices stay at these levels or rise, then the margins for primary gold and silver miners will get worse and potentially collapse to a point where miners will have to make some very tough decisions about selling their companies, shutting down mines, etc.
- Source, Wall St for Main St