Stone, I've about given up trying to figure the market's behaviour lately, too. On BNN, one analyst will come on and say that there's a direct correlation between price of oil and price of gold, and that the price of oil has "fallen." What an incredibly short point of view. Excuse me, but 6 months ago if you had said the price of oil was around $120.00 a barell, I would be jumping around in pain. I don't think the price of oil has "fallen" until it goes down to at least $80.00. And I don't think it will.

I also don't buy the direct correlation between oil and gold to begin with. We have so much faith here in North America in fiat currency that analysts (and even BNN) continually report gold as a "commodity" instead of a currency. In India, and other countries where they know about fiat money collapse, your average citizen will buy gold in good times to protect them in bad. Here, if I suggest to someone that they buy gold, they give me a strange, blank look.

One analyst will come on, and predict that the Fed will lower interest rates 50 basis points. Another will come on, and predict that interest rates will have to go up. Either way (inflation or protracted recession) the economy is screwed, and gold looks a lot better.

To be fair to BNN, they do sometimes feature gold bugs, and are only reflecting what their special guests are saying.

I really don't understand how these gold and silver mining companies can generate profits that beat most of the companies on the street, and still have their share prices pummeled. That, too is completely irrational. Silvercorp, for instance, is doing very well. Kinross just took on a bunch more risk, but they are also very much in the green. The price of silver and gold will have to come off substantially for the large corporations to lose money.

There's still so much unreality and irrationality going around that I know it's still not the bottom. It can't be. The bottom is 6 months from now, at least.