Gold & Silver

If you think precious metals are expensive you are sorely mistaken. They are, in fact, dirt cheap (relatively speaking, I must admit!) when compared with the equivalent cost of the gemstones identified below. Take a look.

The price of oil is currently undergoing a major decline but it is nothing compared to other famous oil slumps in history. Let's take a look.

When will gold and silver rally? We would say the best answer comes from a reading of the charts. Has a bottom been confirmed? Not by our standard of confirmation. Let me explain.

An inordinate build-up of short positions in silver by the "smart money” or “insiders” implied lower gold and silver prices and the charts shown here confirmed that.

Over the years only 14 pundits have been bold enough to provide a specific date as to when their forecast for the future price of silver would be realized. This article provides that information along with the criteria & rationale for their determinations.

Gold is up significantly in 4 of the 7 top currencies (the euro, British pound, Australian and Canadian dollars), up respectably in 2 others (U.S. dollar and Japanese yen) and down slightly in the last (Swiss franc) demonstrating amply the value of gold as a hedge, not just against inflation, but against sudden currency devaluation and systemic financial and economic risks as well.

In spite of the fact that gold has rallied from a price of $1,140 last November, my long-term empirical model suggests it is still undervalued and has the potential to rally to $2,000 by late 2015 or 2016 and quite possibly to between $5,000 and $10,000 in six years time. This article explains why that is the case.

Over the years only 42 pundits have been bold enough to provide a specific date as to when their forecast for the future price of gold (and silver, in some cases) would be realized. This article provides that information along with the criteria & rationale for their determinations.

Given the fact that a) the historical movement of silver is 90 – 98% correlated withgold-silver gold, b) silver is currently greatly undervalued relative to its average long-term historical relationship with gold and c) many analysts predict a parabolic rise in the price of gold over the next 5 years it is realistic to expect that silver will also escalate dramatically in price - but by how much? This article applies the historical silver to gold ratios to come up with a range of prices based on specific price levels for gold being reached.

The internet is awash with analysts who believe that gold is going to $7,250+forecasting crystal ball and as low as $725 and that silver is going down to $12 or higher than $120. Such pundits (Roubini, Sinclair, Rickards, Willie and Edelson to name a few) grab a lot of attention in the media but are their prognostications worth paying attention to or are they just a lot of hot air?