Gold

The purpose of gold is to protect purchasing power and hedge against inflation but gold is not immune from speculative bubbles and overvaluation and when the price of gold is compared to the CPI index it is clearly evident that gold has become overvalued.

You wouldn’t know it reading the Wall Street Journal, Bloomberg, or the other popular investment news sources . . . but thus far this year gold prices are up some 16 percent, making the yellow metal just about the top-performing investment asset class of 2016. We expect gold will continue to be one of the best – if not the best – investment-asset class in the months and years ahead. In fact, by this time next year, gold prices could challenge or even surpass their all-time high of $1,924 an ounce reached briefly in September 2011 and, as outlandish as it may seem, gold could double or even triple its historic high by the end of this decade.

Governments will need and want and will engineer higher gold prices because it is their primary method of dealing with otherwise unserviceable debt. Higher gold prices will have the effect of debasing/devaluing their respective currencies which is the result they're looking for. Dramatically cheaper currencies mean that the debt can be serviced much more readily.

Higher gold prices look both reasonable and inevitable. Fifty years ago gold sold for under $40. Gold selling for over $4,000 does not seem unlikely. Depending on the unfolding “insanity” in our political and financial world, $4,000 might be considered quite low in 5 – 10 years.

With the gold to silver ratio over 82 and silver nearing a 21 year low in terms of gold so, regardless of whether or not precious metals fall or raise in the near term, the likelihood that silver will outperform gold is historically very high over the next few years. Here's how to take full advantage.

We are market realists, and the reality is neither gold nor silver are about to launch into the upper reaches of higher prices for the near term but the reasons for such happening are beginning to be more credible so it might occur in the second half of the year.

Own a piece of history – the Royal Canadian Mint’s unique, pristine and beautiful ‘100 Kilo’ gold coin – one of the largest, the purest and rarest gold coins in the world - is for sale!

An intermediate top is forming in gold and silver, confirmed by the latest COT data, indicating that a severe drop is imminent. In addition, the latest 1-year chart for gold shows gold having become heavily overbought after after a parabolic slingshot move. Breakdown from the parabola will likely lead to a dramatic plunge. This article addresses these factors complete with enlightening charts. Read on.

All signs are now flashing that we have just seen the end of the correction in gold. The fundamental economic and geopolitical backdrops are in place already.The opportunity looks to be significant in the precious metals market over the coming years.

Gold is in a hurry and is unlikely to wait for investors to acquire it at anywhere near these prices. We could now see a quick move to $1,400 and if gold doesn’t stay too long at that level, the acceleration is likely to continue towards the previous high of $1,900 and go even as high as $2,000/ozt. That being said, silver will move twice as fast as gold and could well reach $50 in 2016. Here's why.