Gold

Gold is trading at its highest level in more than 5 years and is likely on the verge of a major break out that should elevate prices of the yellow metal much higher. Here's why.

These charts tell me that, even though gold is still down from its 2011 peak, investors continue to value it as an attractive store of value.

It would seem that there is a considerable lack of understanding about what the term "safe haven" actually means when it comes to gold. Let me explain just what it means - and does not mean. Words: 740

My long standing target for gold of $10,000 in today’s money and much, much higher in inflationary terms, is now more probable than ever but I hope it will never be achieved. When gold goes to $10,000, It will not just reflect inflation and falling currencies like in the 1970s but a much more serious or even catastrophic situation both in the U.S. and globally so let’s look at a potential scenario for the next few years. This is obviously not a forecast but more of a rough sketch of what could happen:

Why do some analysts argue that the gold:silver ratio should reflect the relative rarities of the two metals in the ground and therefore be 10:1 or lower? I don’t know, but it isn’t a valid argument. Neither is the argument that the gold:silver ratio should be around 16:1 because that’s what it averaged for hundreds of years prior to the last hundred years. So, what should it be?

Independent research recommends that an allocation of 10% to gold and 5% to silver should be enough to ensure you will do much better in the coming market crash. Here is the rationale.

A central bank’s worst nightmare is when they want inflation and can’t get it. The Fed’s tricks have all failed. Is there another rabbit in the hat? Actually, there is. The Fed could announce that effective immediately the price of gold was $5,000 per troy ounce which would cause massive inflation within 15 minutes.

The age-old battle of what should be money continues. Today, the battle is between the banking establishment and the masses of people who trade our markets. The establishment desires to enslave the people with their imaginary ‘cyber’ digits and a cashless society. The people, however, desire a tangible object like silver & gold.

SLV is trading at an attractive level, and appears to have entered a new uptrend towards the end of last year. The recent correction appears to be a positive technical development which should allow market participants to enter SLV at an appealing point around current levels.

There are numerous constructive fundamental, technical, and psychological variables that suggest gold is likely going substantially higher from here. As such, this is likely an extremely good time to accumulate gold, gold miners, and other gold-related assets.