Friday , 29 March 2024

Monthly Archives: April 2014

The Gold Story Is NOT Over. Far From It. Here’s Why

Is it time to admit defeat, sell our positions, slink into a cave, and lick our wounds? Absolutely not. The only thing that changed over the past 60 days was the price of gold, and perhaps the mainstream's perception of our industry. The realities of the fiscal and monetary state of the world, however, did not. Amid the ongoing rollercoaster ride of gold prices, clearheaded thinking reveals reasons to be optimistic.

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Gold Price Forecasts (Update): $5,000 to $11,000 In 2 to 5 Years (+12K Views)

During 2011 into 2013 I kept a record of those individuals who expected gold to rise substantially in the coming years and presented updated summaries in a number of articles (see links below). Below are additional or recently updated forecasts by 11 prognosticators whose projections are surprisingly consistent, on average, with previous such estimates.

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These 5 Events Will Lead to Higher Gold & Silver Prices (+3K Views)

It is my contention that the move in precious metals...[from] late 2008 through 2011 was largely a result of the expansion in central bank balance sheets and the perceived threat of runaway inflation. Since 2011, [however,] we’ve seen economic growth improve and inflation rates across the globe subside. As a result, investment banks and market strategists are arguing against owning gold, and making the case that, with a lack of inflation and an improved economy, the need for owning gold as an insurance hedge against inflation and currency debasement is no longer present. I strongly disagree.

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A Close Look At the Relationship Between Gold & Silver (4K Views)

Until the crisis in the international monetary system is resolved, the monetary aspect of silver will dominate its industrial aspect, and gold will keep its leadership role. As the silver price goes up, the more the industrial demand will decline, while the monetary demand will rise. The question is, in what proportions will this happen. Central banks and sovereign funds will dominate the gold market, whereas private investors will mainly dominate the silver market. There is no central bank that I know of that is buying silver today for its monetary reserves. Gold remains mainly a monetary metal, whereas silver has, above all, become an industrial metal that, in a monetary crisis like today's, can play a monetary role, as "poor man’s gold".

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China Knows Something About Gold That the West Does Not – Here’s What It Is (+2K Views)

[It has been] suggested recently that there must be collusion between America and China over the transfer of gold from Western capital markets. They assume that governments know what they are doing, so there is a bigger game afoot of which we are unaware. The truth of the matter, though, is simply that China and Western capital markets view gold very differently. Let me explain.

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