Post by
frankman on Jul 04, 2013 10:36am
I like Au,Ag fundamentals forming but ignore meth taking gold gurus (some analysis)
Who cares what gurus think? They helped fuel massive losses for others. Especially the ones without an education in economics and others making wild guesses to the price of gold (especially the one that called for $3,500 gold months ago, and remember 10k gold?) These individuals caused massive losses to many in their portfolios. As I told you before any monkey in the 70's 80's could have predicted increases in gold prices as China and India were not even major factors in the markets yet.
Here is one main problem. Investing with your heart and not your head. Fear and greed as we all know are the cornerstones to herd mentality, but you should look at world economics now as it is a global economy no longer completely dependent on the reduced factor the United States has. Use your head and always take profit in any climate.
Having said that I like the fundamentals forming for gold, and silver. Scrap metals continue to dry up and hedge funds and other market players are beginning to ease up and no longer in panic mode. Also prices for gold and silver are almost at production costs. Gold could along with all asset classes could and probably will get smacked down again when the eventual QE easing pares down, but those exiting the markets will likely reinvest in gold and silver again at some point to park their money as a hedge against inflation.
Inflation is and always will be the main driver for us gold bugs to hedge against inflation. Higher interest rates in North American mortgages (and eventual general lending rates) will help stimulate the price of gold but other factors as well as world (country) bond rates will see a rise as this represents debt and many counties printing money will have to pay bond holders when the notes become due.This of course will take time.
Oil again hitting the $100 dollar mark and has steadily remained high (which will cool by labour day) also fuels inflation as the cost of virtually everything goes up as everything you buy requires manufacturing and transportation costs to your local store. Even if you hate oil little electric cars and windmills can’t transport massive amounts of goods worldwide that YOU use.
At this point I don't see massive inflation on the horizon but I see enough to significantly increase the buying of gold again thus increasing demand and a rising price of gold. Of course gurus again may start trumpeting again just ignore their meth taking predictions (remember the idiotic 10k gold?) Inflation won't happen overnight and I still see 2013 sideways at best for gold. 2014 is too early yet with many variables for prognostication, but I like where we're heading with good forming fundamentals supporting gold and silver.
For now buy oversold Au,Ag producers and ignore explorers for now over all. Just ignore meth taking predictions and ALWAYS take profit.