Your weekend recap to Precious Metals investing – July 6, 2012
?IS SILVER A GOOD DEAL AT $27 to $29?
We think silver has more upside potential than gold, but it’s also more volatile. Depending on your tolerance for sometimes massive price moves, we advise buying more silver than gold, but some people can’t take the volatility.”?”I think these prices are terrific,” he declared. “We have probably reached the lows for this cycle
. The lows for silver usually happen around June. Prices typically go up in September. One reason for that is all the buying by goldsmiths and silversmiths in India for the products they make for weddings and religious festivals. In addition to filling orders, I’m buying silver for inventory.”?”I think these are good prices,” he said. “People who buy now should do fine in the long term. I think the low point for silver will be $25 to $26. We could see silver at $35 to $40 by the end of the year.
Huge Price Declines Are Not New In This Long-Term Gold Bull Market
“The crucial factors indicating the continuation of the long-term upward trend have not changed. We regard the real interest rates as central argument in favour of the trend – both in the USA and the Eurozone they will remain negative for a while. And indeed they are negative in many big importer nations such as India, China, Turkey, and Vietnam. On top of this we expect the still fragile shape the financial markets are in, the increasing skepticism with regard to uncovered paper currencies, and the persistent government debt problem to continue supporting the gold price in the foreseeable future.?”We therefore stick to our positive outlook and in the long run expect the gold price to exceed its inflation-adjusted all-time-high of USD 2,300/ounce.”
John Embry: I don’t look at short term price charts for gold. In a market as heavily interfered with as this one, charts can be made to look any way you want in the short run. As I see it, if you don’t like gold at these prices, then you must like currencies. My partner Eric Sprott often says, the U.S. dollar is the best looking horse in the glue factory. If the U.S. dollar is the world’s strongest currency, that’s the best endorsement for gold that I can think of.
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