Gold, Silver & Other Commodities

You will read more and more articles touting how gold and silver have bottomed. They have not, at least according to price behavior as determined by actual buyers and sellers in the market.

As the U.S. economy continues to improve steadily, the Federal Reserve prepares to dial back its QE policy, and investors continue to rotate into stocks, the price of gold is poised to fall further. Look for another down leg in the range of $1,000 to $900 an ounce. That's another 20% to 25% loss.

Is gold undervalued or overvalued?...[Unfortunately,] there's no good way - and definitely no universally accepted way - to determine a "fair value" for gold. Unlike a stock, gold doesn't have a price-to-earnings ratio that we can easily compare to the market. [That being said, I offer in this article] a logical, real-world price target. Words: 700

The waterfall decline...[in silver prices] has resulted in many silver investors throwing in the towel and exiting their positions. However, this is herd mentality and every successful investor knows it is almost always a failing strategy. With sentiment near all-time lows and blood still running in the streets, I am doing the exact opposite and wading into the waters once again. [Below are 8 reasons why I think that silver has bottomed.] Words: 1570

From the onset of the global financial crisis, the price of gold has often been portrayed as a barometer of global economic insecurity (in principle, holding gold is a form of insurance against war, financial Armageddon, and wholesale currency debasement) so does the collapse in gold prices - from a peak of $1,900 per ounce in August 2011 to under $1,250 at the beginning of July 2013 - represent a vote of confidence in the global economy?

The old adage “history repeats itself” has been applied to all facets of the investing world...and Peter Schiff believes that the phrase points the path to a major run up in gold that few investors will be counting on. [The truth of the matter, however, is that,] while there are some striking similarities between today and the mid-’70s, our current economy is unlike what anyone has ever seen. We are truly wading into uncharted territory and it is nearly impossible to definitively say where we will be heading next.

While the US$3000 figure is wildly above most forecasts, which are mostly flat at the current level, UBS global commodity analyst Tom Price said these flat forecasts are based less on informed analysis than on the fact that "people just don't know what's going on."

Charts speak the loudest...and they never lie...[because they are] the true record of all buy and sell decisions executed, coming from the most informed to the least informed. Most of the problems lie with those who form an opinion, and how they choose to impose it onto what any given chart “says.” My understanding of what the quarterly monthly, weekly and daily charts are conveying about the price action of silver is, simply,] "Silver stackers, these lower prices are a gift you should keep on taking. Stay tuned."

An earlier article on gold & silver went viral with almost 30,000 reads on munKNEE.com alone and continues to be read by hundreds of goldbugs daily. Below is an updated chart and analysis suggesting that gold & silver have further to drop before they go parabolic. Take a look and share it with friends.

Below are the four most important factors that influence the price of gold indicators....If you understand and correctly interpret these four indicators, I guarantee you'll make more intelligent buy/sell decisions. More importantly, you'll make more profitable ones as well.