Gold & Silver

If you want to make rabbit stew, first, you have to catch the rabbit so hopefully, first, we'll see some concrete signs that a bottom is in before the regurgitation of “Gold is going to $10,000!” starts showing up in a host of new articles pandering for attention. The best way is to decide for yourself...so let us go to the most reliable source, the market, and see what the prices of gold and silver have to say about what everyone else has been saying about them. People have been known to exaggerate, even lie in their “opinions,” but the market never does either.

Many analysts believe they have insights that enable them to predict the future. They forecast gold going anywhere from $2,600 to $5,000 before the end of 2012 or by the end of 2013 at the latest. Unfortunately, the reading public quickly forgot their prognostications and continue to put credence in their latest crystal ball predictions. This site has decided to call their number. Below is a list of those bold enough to forecast the price of gold reaching a particular price by a specific date and missing the mark.

Lately, the dollar has been making a comeback and, as usual, gold is tanking...[That being said,] however, the timing of the dollar’s resurgence is a bit curious. Perhaps not coincidentally, gold began tanking just as the dollar was advancing against the yen. [Why do I say "Perhaps not coincidentally"? Read on.]

Surely, the swift and severe plunge in gold represents a buying opportunity, right? I mean, it's not like the Fed finally stopped printing money, right? Wrong! As the old saying goes, "never try to catch a falling knife" and that's especially true in the case of gold. Below are 3 fundamental forces working against gold prices and, combined, they could ultimately push the precious metal down another 25% from here.

Is gold still good? For many investors, the answer is a resounding "No!" but that doesn't answer the question: Is gold still good?

Gold may be set to nearly double from current levels, but it didn’t drop in a straight line and it won’t return to (and surpass) its previous highs in a straight line, either.

This ten minute interview with Eric Sprott is excellent and worth your time. He makes the best case I have heard or read recently about why the financial fundamentals are so good for precious metals...both physical gold and silver and the good mining stocks. It is really worth listening to.

No one has a crystal ball and I certainly don’t claim to have one. [Nevertheless,] I strongly believe that the prices we see today in gold and silver will be looked back upon in the next few years as a great buying opportunity. The data I read and understand tells me the case for gold and silver is now a strong one...If you are conservative dollar cost average into a position for a long time now [otherwise] I am OK with a full allocation into gold and silver at this point in time...

A more aggressive devaluation of paper currencies is on the horizon thus the whole PM Complex is completely underpriced. Averaging in from this point on seems warranted. Below is a full explanation as to why that is the case.

It’s been a tough road for precious metals but the path ahead has strong potential of being significantly profitable and in a short period of time. The buying opportunity that we’ve spoken of for months could be days away. When precious metals equities rebound, they rebound violently.