The following picture speaks 10,000 words. The results will be a very high price for gold and silver – and lots of misery for lots of people. Or, put another way, when I asked a friend, who also owns a precious metals company, if he thought that Obama would be re-elected, he replied, “If he is, it will be good for business.” With three friends like Geithner, Bernanke and Obama, how can gold miss!
Gold is struggling to break out of the manipulation that is forcing it below $1,650 and $1,620 still remains a formidable bottom. Gold may be range-bound for a week or two but one of these days, soon, $1,650 will be passed and $1,700 will be the target.
We must be near the bottom because business is very slow throughout the industry. People have been lulled into doubt and complacency. When sentiment is this low, the odds favor a move up in price.
I’ve received a few emails from clients who are concerned about the losses they incurred in gold and silver since last fall. $1,900 gold and $50 silver seem so far away and the bears are coming out of hibernation led by Dennis Gartman and (short-term) Larry Edelson. They’ll be bulls soon enough. New highs will be hit in the next 12-24 months. After the election, everything changes. Everything but more debt and more QE to keep the game moving ahead. This is gold’s time. I bought more gold and silver this week and as usual, stored it with our International Precious Metal Storage Program. When our phones stop ringing, it’s time to buy. Yes, even gold bugs have a hard time buying near the bottom. It’s easier to buy with prices rising. It gives us more conviction when other people are buying too. That’s not the way to do it. We are at or near the bottom and trying to pick an exact number, even if it would be five or ten percent lower than where gold and silver are now, is not important. No one will be hurt who buys at these levels.
It is a key tenant of PM ownership that ounces matter MUCH more than price. Yes, price has to be an issue because so many of us have limited resources but ounces are far more important. When the dollar / economy collapses, which it will due to the incompetence with which it is being “managed”, no one will ever worry whether they paid $1200, $1500, or $1800 for their gold or $25, $35, or $45 for their silver. The only thing that will matter is, “Do they have enough ounces to see them and their family through the worst of times?”. If so, then they have planned well and will be fine. If not, then NOW is the time to address that shortage and not when the coming train-wreck is hurtling off the tracks and into the abyss.
At the very least, gold and silver ownership is a great way to protect our assets from the silent but persistent thief of inflation. Just ask yourself this: if my grandfather had left me an inheritance containing a face value of $25,000, would I rather than be in paper currency or in gold coins?”. Knowing that, just imagine what a small box of gold coins will be worth in another 10, 20, or 30 years. What we can buy today for cheap will be impossible to buy during a crisis and it will become a terrific family legacy.
Agree with every point.
-David