Metal markets: disappointing, but alternatives are worse'.

Gold and silver ended the third quarter with declining prices. Entering fourth quarter trading, the metals have fallen back into the mid-range where they have stayed for more than three years. The fundamentals that were expected to drive the breakout - high inflation and geopolitical turmoil - don't seem to matter to futures market traders. This is extremely disappointing for gold lovers who are watching all of this unfold. Some are questioning the decision to buy the metals. But judging that gold and silver have underperformed is one thing. Finding an investment that may be more successful is quite another.

Will selling metal and holding on to your money help? In the last three years there has been the biggest decline''the purchasing power of the dollar in people's minds. The worst may be yet to come. The Federal Reserve is staying the course of austerity for now, it's true. Here are some true facts. The economic payback for this rigor is still to come. Leading economic indicators, inverse bond yields and a host of other data confirm the onset of a recession. Meanwhile, Congress has demonstrated one by one its inability to resolve spending after passing temporary funding last weekend to avert a government shutdown. Fiscal conservatives pushed for some fiscal discipline, but House Speaker Kevin McCarthy threw them over the edge and cut a deal with Joe''Biden and the Democrats. The federal deficit is now measured in the trillions of dollars annually and will only grow as the economy slows down, resulting in less tax revenue. Someone is going to have to buy all that government debt. The problem is that one look at the yield chart already tells us that the appetite is shrinking, not growing. Past that it's only a matter of time before the Federal Reserve becomes the latest buyer of federal debt again. If the recession gets bad enough, a pointless Congress is also likely to resume destructive dollar stimulus actions. That means holding money is not as safe as it may seem.

Also''look problematic equity markets. The drop in the S&P 500 Index essentially mirrors the decline in gold prices over the past 30 days. The difference is that stocks are historically overvalued while gold is disappointingly cheap. The price-to-earnings ratio for the S&P 500 is currently at 24.5. That's higher than any peak during the entire 20th century, with the exception of the Internet bubble of 1999.

What about bonds? Prices are falling and yields are rising, but that doesn't mean it's time to buy. Corporate bonds probably don't yet reflect the true risk of capital, given that bankruptcies are skyrocketing and the outlook for profits is bleak.

Maybe Bonds'. 'Treasuries will jump when the Federal Reserve resumes monetizing the national debt. The problem is that such a bet is based on the assumption that the past will be a prerequisite. The instrumentalization of the U.S. dollar has seriously undermined its status as a reserve currency. Confidence is plummeting. The next phase of monetization will only accelerate its decline. But owning any kind of fixed-rate, dollar-denominated debt while the federal reserve rate heads toward a cliff doesn't look very wise.

What about real estate? Commercial real estate prices have fallen in some prominent markets like San Francisco, but from the looks of it, the worst may be yet to come. Demand for retail space is disappearing''as Americans increasingly shop online. Companies are also cutting back on office space as more people work from home. Given the prospect of a recession and rising interest rates, now doesn't look like the time to bid on commercial real estate.

There aren't many good deals in residential real estate either. Home prices remain near all-time highs according to the national Case-Shiller index. Rising interest rates have suppressed demand for mortgages, but also seem to have limited supply. Property owners are reluctant to sell homes when the rate on their existing mortgage is half what it will become if they move. The impasse won't last forever. When it is resolved, the likelihood is that the'That house prices will go down is increasing. Solvency will be at a low level under such conditions, and that will matter in the long run.

Most conventional assets look overvalued, while gold and silver look relatively cheap. The game may be to wait for the moment when a panic in one or more of these sectors brings the next wave of buyers into the metals markets. Clint Signer is a principal at Money Metals Exchange, a precious metals dealer that was recently named "Best in the U.S." by an independent global rating group. A graduate of Linfield College in Oregon, Signer utilizes his experience in business management and passion for personal freedom, limited government and honest money''in developing the Money Metals brand and outreach. This includes written material on precious metals markets and their interaction with politics and world affairs.