As a general rule of thumb, we all know that fundamentals are not always reflected in the charts. It mostly takes some time until the price follows fundamentals. For palladium in particular, there is a very high probability that its chart starts reflecting the strong supply/demand fundamentals.
Tag: gold outlook
There is something going on in the gold and silver market, and it is difficult to ascertain exactly what it is. Perhaps it can best be described as a change in market behavior that may be defining a potential change in trend. 2014 is now THE year for the “big breakout.” It has to be presented as such because calling 2013 the big year will no longer work.
Every investor understand the principle buy low and sell high. When prices are low, nobody wants to buy. When I compare gold shares and the price of gold to the S&P 500, the S&P is up substantially since 2011 and gold is down. So if you compare the performance of gold shares to the S&P, I think it’s been a disaster for gold shares. When I look around, I think the price of gold is one of the few assets that are relatively inexpensive.
A reasonable projection for the equilibrium gold price (a “fair” price for gold) in 2017 is $2,400 – $2,900. Remembering that market prices can spike significantly above or crash below the EGP for many months, we could see a spike high above $3,500 or $4,000 in 2017. Extraordinary events such as a global war or dollar melt-down could push prices higher and sooner.
The entire world-wide banking system is corrupt and run by corrupt people whose only objective is to steal as much of your money as they can. We are of the mind that the western banking Ponzi scheme can go on for longer than most expect. It could take one or even two to three years longer before the fiat system unravels. Things could also go awry in the next several months. Regardless of when, the handwriting is on the wall for those who pay attention.
We need to see more in the way of all round strength in this sector before we can implement an aggressive acquisitions strategy and so we have the lion’s share of our portfolio in cash. However, allocating a small amount of your investment funds to the acquisition of a few good quality gold and silver stocks in order to have a one foot in the precious metals camp might not be a bad idea, but go very gently as these are dangerous times for gold bugs.
Whether the economic recovery is for real or not, remains to be seen. Judging from the recent economic data, there seems to be no recovery in real terms, only an artificial push in financial risk assets based on hopes for easy money. As investors, it all boils down to risk reduction. Precious metals have the unique characteristic to mitigate counterparty risk, which is far more important in our humble opinion than speculation (hope) on recovery.
When those fears began to evaporate, gold investors looked down, saw no safety nets—and began bailing out. No inflation? No euro crisis? No reason to hold gold. We think most investors are missing the point: nearly six years of unprecedented money printing, unprecedented subsidization of big banks with zero-cost money, and massive government intervention into the economy have not delivered even a soupçon of robust, inflation-generating growth.
In this week’s online radio appearances, David Morgan explains his latest take on precious metals in 2014 and the very short term silver price. He touches on more fundamental questions like the dollar world reserve currency and the financial system. We highlighted several quotes in this article.
Despite calls for lower prices from practically every major bank, the price of the yellow metal is now up by around 10% from the beginning of the year. Gold has now broken above the $1300 for the first time since November last year. This is an important turning point for the yellow metal, and I urge you to consider adding to your portfolio, as I believe the bull market is making a comeback.
In this article we look at gold from different angles: the money supply, the physical gold market and technical gold indicators. Ten long term charts point to a healty condition in the gold market amid the price drop of 2013. We have always advocated to look at gold in a holistic way; the following charts offer a wide perspective.
It’s no news that inflation is one of the biggest retirement risks. There is a school of though that allocating a portion your self-directed IRA to precious metals – like gold or its stocks – could help hedge against inflation. In fact, with buzzes going around that inflation is around the corner, gold IRA rollover is becoming increasingly popular. But, in reality, gold isn’t the ultimate inflation-hedging tool it’s being made to be. Here is why.
Financially smart people own and personally hold, and continue to buy gold and silver, the most durable “wealth” preserver of all. The word “wealth” is used for lack of a better choice in the asset class of precious metals. There has been no wealth preservation owning gold and silver for the past few years, stated and acknowledged. The choice is simple: paper or hard assets? Owning gold or silver ETFs or futures are paper and not a claim on the physical. Accept no substitutes.
The recent rise in the gold price may well be an early warning sign that the currently extant asset price bubbles as well as the economy are set to suffer a sizable setback in the not-too-distant future. Admittedly, the recent rally in gold may yet be reversed, in which case these musings would no longer apply. However, if one puts the rally into context with recent developments (QE tapering and a recent slew of weaker economic data releases), it seems increasingly likely that this is precisely its message.
We wrote yesterday that the $1250 to $1260 level for gold is critical. With today’s solid move higher, chances are growing that this move higher is a sustainable rally and the beginnings of a new upleg. The performance of the gold price is surprising as the general consensus was that gold would break down in the light of US Fed tapering. The opposite seems to be true. Since the taper started on 19 December 2013, gold has been the best performing financial asset, with a gain of 3.75%.