Gold & Silver Price Outlook

Many have asked where gold and silver prices will go from here?  Short term, no one knows!
Yes, US is on the verge of signing into law to raise the debt ceiling, thus avoiding a default.  Will that lead to renewed confidence in the US economy and see prices of gold and silver to retreat?

However, the alternative view is then when all the euphoria of avoiding the default settles, investors will start to realise that more fiat currency would be printed.  This in turn leads to higher gold and silver prices.  I leave you a few links for your guidance:

Raising Debt Ceiling by $2.5 Trillion -  Gold to Surge to $1950


Interview with James Turk
Part 1



Part 2



Have a good day!

Are we going to see Silver Move Into Record Highs?

This is the start of the next big leg higher in the precious metals.  We’re at a new record closing high in gold today, that is extraordinary considering it is happening against the headwind of a stronger dollar.  There is an important message here, money fleeing the Euro is not just going to the dollar, it’s flowing into the metal of kings.

People are recognizing that the only true safe haven is the precious metals.  There are still so few people talking about gold and silver having an explosive summer.  The fact that there is still so little bullish sentiment just reconfirms my view that gold and silver are ready to rocket higher. 

Policy-makers on both sides of the Atlantic still don’t get it.  They don’t understand that the problem is too much debt.  You can’t solve a debt problem by piling on more debt.  Greece is bankrupt, as is Ireland and half of the European countries.

Most of the big banks over there aren’t much better off given that their portfolios are chalked full of bad sovereign debts.  But the same thing is true on the other side of the Atlantic Eric.  Policy-makers in the US can’t even agree to make spending cuts in the future, let alone where they should be made which is right here and now in order to reduce government spending and the burden it places on the wealth-creating private sector.

We’ve seen yet again that support for silver at $35 was tested successfully.  This is a huge and powerful base and with gold already probing record highs, silver won’t be far behind.....  

One never knows exactly how the markets will unfold, but my sense is that we only have several more days of silver in the 30’s.  Once silver clears $38 on a closing basis, you are going to get back into the mid 40’s in a heartbeat.

I am beginning to see the strength in the gold mining shares over the last few trading sessions.  Both the XAU and HUI are within their multi-month trading ranges, but look for both of them to begin probing overhead resistance which would be the 225 area for the XAU and 560 for the HUI.  It’s important to note that the HUI is only 3% away from that level, which could happen tomorrow if we have another big up-day like today.

The action in gold and silver so far this summer indicates that this is in fact poised to be explosive on the upside.  Nobody is talking about this, but it could be a reality in short order.  Here it is nearly 30 years after the breathtaking summer of 1982, and I think history is about to repeat all over again.

Mike Maloney - Russian Banker's Conference 2010

Watch this videos of Mike Maloney giving a speech at the Russian Banker's Conference 2010.  You might laugh now..... but do take notice of the price charts he highlights in Part 2.

The debasement of our monetary system continues ..... so what are we heading for?


Part 1



Part 2

How High Can Gold & Silver Go?

Taking into account 11 key measurements based on historical movements and price ratios, gold is likely to exceed $5,000 and silver is likely to exceed $200 within the next 5 years. If silver reverts to its historical ratio of 16 to 1 with gold, then it could rise even higher. Let me explain. Words: 795

So says Chris Mack (tradeplacer.com) in a recent article* which Lorimer Wilson, editor of www.munKNEE.com, has reformatted into edited [...] excerpts below for the sake of clarity and brevity to ensure a fast and easy read. (Please note that this paragraph must be included in any article reposting to avoid copyright infringement.) Mack goes on to say:

In recent weeks gold and silver have broken through their multi-month consolidation levels, and investors are wondering where the precious metals are headed. On a short term basis both gold and silver are overbought and due for a correction that may retest the breakout levels of $1,250 on gold and $20 on silver.

$1,500 Gold and $30 Silver By 2011
On a longer term basis, gold is at an all time high and silver is at a 30 year high. These breakout levels were key because they removed any supply of sellers wanting to sell near their previous purchase prices. The result will be a vacuum in price discovery, because virtually any investor in gold and silver now has a profitable trade and the price will have to rise until enough of these investors decide to take gains. Projecting from the size of the consolidation in precious metals the next key level where sellers arise could be near $1,500 gold and $30 silver by 2011.

Gold and Silver Have MUCH Higher to Run
Gold has risen every year for 10 years in a row now, demonstrating a powerful bull market that began in 2000. Since gold bull markets tend to last 15 to 18 years, investors are wondering how much potential the precious metals have in them. Gold and silver have to move substantially higher to revert to their inflation adjusted highs. However further dollar devaluation could multiply the potential gains.

Gold
$10,226 – Current SGS inflation adjusted high 2015 with 6% inflation
$8,658 – Nasdaq 1995-2000, 6.66 factor
$7,949 – Gold 1975-1980
$7,689 – Current SGS inflation adjusted high
$7,240 – 1980 Dow to gold ratio of 1.5 to 1
$6,500 – 80% dollar devaluation
$5,430 – 1930′s Dow to gold ratio of 2 to 1
$4,719 – Nikkei 5yr 1985-1990, 3.63 factor
$4,697 – Adjusted by growth in money supply/gold supply
$3,618 – Current CPI adjusted high 2015 with 6% inflation
$2,382 – Current CPI adjusted high
$6,241.64 – Average

Silver 
$594 – Current SGS inflation adjusted high 2015 with 6% inflation
$447 – Current SGS inflation adjusted high
$434 – 1980 Dow to silver ratio of 25 to 1
$410 – 80% dollar devaluation and return to 1/16 gold
$276 – Adjusted by growth in money supply/gold supply
$200 – Silver 1975-1980
$184 – Current CPI adjusted high 2015 with 6% inflation
$139 – Current CPI adjusted high
$136 – Nasdaq 1995-2000, 6.66 factor
$102 – 80% dollar devaluation
$74 – Nikkei 5yr 1985-1990, 3.63 factor
$272.36 – Average

The above analyses are in keeping with the projections of 102 other prognosticators, the majority of whom see gold reaching a parabolic price peak of at least $5,000 (see here for the 102 individuals and their projections and herefor comments on Jim Sinclair’s $1 million dollar bet that gold will reach $1,650 by January, 2011), and silver going as high as $712 (see here for the rationale for such an extremely high price based on $10,000 gold and here for the reasoning behind James Turk’s contention that silver is going to $400 by 2015 and gold to $8,000).

While most of these statistics use the 1980 highs in gold and silver as a proxy, there is much more potential for a greater move in precious metals now because currency and economic imbalances are not confined to the U.S. but are global. If the US dollar is devalued, it is likely that the Euro, Yen and other currencies would also be devalued. While the 1970′s bull market in gold and silver was largely driven by U.S. buyers, a panic to buy precious metals within the next 5 years will be driven globally.

Conclusion
As I said in the opening paragraph, “gold is likely to exceed $5,000 and silver is likely to exceed $200 within the next 5 years. If silver reverts to its historical ratio of 16 to 1 with gold, then it could rise even higher.”

Given what you have read above would you not agree that you should buy some (or more) gold and/or silver at the first sign of any temporary weakness in price? I certainly think so!

What Does $1300 Gold Mean for Silver?

All eyes are on GOLD but the greater opportunity for percentage gains in in SILVER.

Chinese Government Calling for Its Citizens to Buy Gold and Silver

If the Chinese government is calling for its people to invest in Gold and Silver, what do you think will happen to prices if these precious metals?