Gold

Gold, like any merchandise, changes price according to supply and demand. In this article, we look at the supply and demand to understand where the gold price is possibly heading.

The pullback I’ve been warning you about in the U.S. equity markets is finally at hand but, once this pullback in the broad stock indices is over, the Dow Jones Industrial will lead the way higher yet again, and catapult to 31,000 over the next three years, with gold reaching $5,000, silver $125 and select individual stocks in the mining sector spinning off gains of 2,000%, 3,000% and even more. No, I'm not out of my mind. Quite to the contrary, I believe I am the one analyst who really understands the forces that are building to enable such to occur. Read on to learn about my enviable track record over the years and specifically why such gains will be realized over the next three years.

War cycles - cycles that govern human social interaction on a grand scale, cycles that can be quantified and used to forecast periods of peace and war, periods of civil unrest and international conflict - are now ramping up and converging in the worst possible combination of forces not seen since the late 1800s. In the process they are setting the stage for gold and silver to explode higher with gold going up to well over $5,000 an ounce a few years from now … silver to more than $125 an ounce … and mining shares, to the moon.

We are monitoring three developing situations that we believe could have a profound impact on gold demand during the remainder of the year -- driving forces that could provide impetus for a classic gold run that could begin with a summer surprise.

No one knows when gold and silver will rally and anyone who says otherwise has already been proven wrong. Despite a decent rally in both gold and silver over the past 7 trading days, a look at the charts shows that both remain in bear market conditions overall with no defined indication of ongoing strength.

The latest 94-page In Gold we Trust report from Incrementum AG is must reading for anyone interested in gold and its likely future path. Here is a 1-page executive summary.

This is Part 4 of an excellent 5-part series of infographics (links to the previous 3 are provided below) on various aspects of gold.

Why do more and more countries want to repatriate their gold from foreign vaults? Because their governments no longer trust the global, fiat monetary system...[Neither] should you. Let me explain further.

We are of the opinion that the miners and explorers (and their indexes GDX and GDXJ} should be "swapped" for the precious metals - gold, silver, and their proxies (GLD and SLV). This way investors will maintain exposure to precious metals while reducing their exposure to the more volatile miners as some of the share dilution and recent investor exuberance play out - and at least hedge themselves if the price continues to rise.

If the U.S. economy weakens in the second half as a result of higher energy prices, that could cause interest rates and the dollar to fall — fueling a rally in metals.