Quote:
Originally Posted by Rocky_Shorz
Gold is up to $888 up 38 dollars since today's close, Silver is up to almost $12.50
It didn't slow down today after trading finished, what is the normal response in the metals market when a war breaks out that might end up involving the whole world?
Would you expect it to spike up, or down?
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Hey Rocky, read this article and trust your instincts, I've also attached the link, written by Marc Courtenay
http://seekingalpha.com/article/8584...wn-gold-silver
copied below.....
"The Coming Economic Collapse...How You Can Thrive When Oil Costs $200 a Barrel", it was 2006 and oil was around $70 a barrel, so this gentleman and his team certainly seem to be on the ball (or on "the barrel" depending on your perspective).
That is why I think a subscription to The Complete Investor is something you should seriously consider. I'm a subscriber, and I'm NOT PAID to recommend this uniquely valuable newsletter or any newsletter. Here's some questions they were asking us about on Friday morning:
Are you prepared for what is about to unfold?
Russian and Saudi Arabian oil production have peaked – leaving the world with no way to meet our rapidly growing demand for energy.
Oil prices must surpass $240 a barrel in the next few years in order to avoid severe shortages...
Commodity prices, already at record highs, are poised to make their greatest gains in history over the next five years.
Inflation will climb as high as 25%-30% annually, destroying the value of most people's savings and crushing their retirement dreams.
95% of Americans will experience a lower standard of living within the next 10 years.
These are bold assertions, but again, Dr. Leeb has a lot of credibility and his research team works hard to be accurate. If they are correct or anywhere close to correct, gold and silver prices are going to soar. The same is true for copper and most likely platinum and paladium.
Precious metals tend to do very well when energy and commodity prices are "already at record highs, [and] are poised to make their greatest gains in history over the next five years"!
Right now gold seems high at around $957 and silver also seems high at over $18 an ounce. But there are bus loads of seasoned analysts and respected precious metals "bugs" who are saying gold could go to $3,000 and silver might go over $50 an ounce.
They (including the folks at Casey Research) are saying that it wouldn't surprise them if gold and silver corrected somewhat this summer, especially if oil and natural gas prices correct.
My colleague Puru Saxena wrote me from Hong Kong early Friday morning. His words included:
In summary, don't be surprised to see oil correct in the days ahead and I can promise you that the media will be very quick to proclaim the end of the "oil bubble". However, if my assessment is correct, such a correction will be a fantastic buying opportunity in oil futures, options and top-quality companies in the oil and gas sector.
Concerning the precious metals, Purus, who writes the very respected newsletter Money Matters, which I highly recommend, said the following: "Summer months are usually a weak period for metals so continue to use the ongoing correction as a buying opportunity in this sector."
To see gold consolidating met the expectations of James Moore, of TheBullionDesk.com. "With investor risk appetite showing a slight improvement and having posted aggressive gains last week, it comes as no surprise to see the metal correct," Moore wrote.
"To avoid a deeper correction, gold needs to establish a base above the $953 to $955 chart level, but given the backdrop of rising inflation and recessionary pressures and increased financial-market jitters, we anticipate investors will view dips favorably, with the metal ultimately set to rechallenge $1,000," Moore added.
And Burton R. Schlichter, of New World Trading, believes that gold is building support, saying that "speculators and traders still have a 'buy the dip' attitude."
Bottom line: There are a lot of reasons currently that gold and silver might go up dramatically over the months and years ahead. The dollar's continued weakness seems inevitable and the ongoing monetary and finanial crises in the western world isn't going away any time soon.
Even if the "worst case scenario" doesn't unfold, what is happening now and the trends that are ongoing now should make investing in precious metals and companies that produce precious metals a very rewarding experience.
P.S.: One of my mentors and a newsletter editor himself told me yesterday that Hecla Mining (HL) is still one of the most under-valued silver producers today. Just thought I'd pass that on.
PPS: Looks like some lucky investors will get to buy Yamana Gold (AUY) under $14 a share. That would be under 14 times projected earnings, and here's a company with almost no debt and a profit margin of over 20%. Bargains are so sweet!