Now may be the right the time to invest in gold – Despite recent falls in the price of gold, now may be the time to add exposure to the precious metal thanks to demand from Asia, experts suggest. Gold prices performed well earlier through 2016, hitting a two-year high of $1,366 per ounce in July this year, but have since slumped. However, many are seeing this as a price correction, which may be a good opportunity for investors looking to add exposure to the yellow metal and build more favorable positions.
With India as one of the world’s largest gold consumers approaching the festive season, we are optimistic that a surge in demand will push the market prices internationally. Other international factors we are taking into consideration include the US Presidential elections and the Fed interest rates where Gold and the dollar can rally.
DJIA:Gold Ratio Ready To Bust Lower As Gold Price Rises Aggressively, Here’s Why – Gold is set in the “cycle” to rise very aggressively to start to price in the real extent of Dollar Supply increases to date, along with more that is coming. Thus, the DJIA:Gold Ratio is ready to bust lower as Gold busts up and out of the historic flag. Below is my rationale for such pricing action with supporting charts.
This Is Going To Shock World Financial Markets – There are so many people who are concerned about the performance of gold and the fact that the price after four years of correction is still so far from the high.
The mistake that most people make is to measure gold in US dollars. We are currently seeing very temporary dollar strength. But the US $ is a weak currency in a mismanaged economy. Just look at the dollar in Swiss Francs. Since 1970 the dollar has lost 77% against the Swissy. That can hardly be called dollar strength.
If we measure the dollar in real money, which is gold, the not so mighty dollar has lost 80% in this century.
Massive Commercial Short Covering Has Taken Place In The Gold And Silver Markets! – The bottom line is that the commercials have been massively covering their short positions during the orchestrated takedown in the gold and silver markets. This means there could still be a lot of room to the upside in the gold and silver markets, but the commercials may still attempt to cover more of their shorts in the near-term.
UBS Urges Clients to Buy Gold on Pullbacks – The analysts warned that gold could drop as low as $1,225 an ounce (about a 2.3% decline) over the next three months, as investors await and then digest December’s upcoming Fed decision.
Still, UBS believes the Fed is highly unlikely to raise rates in December, which will ultimately be good news for gold. “A slow moving Fed and a moderate pickup in inflation should push real interest rates deeper into negative territory in 2017. Historically, this has acted as a powerful driver of higher gold prices.”
The Investment Legends Are All Warning, Few Are Listening – More and more insiders are warning of a potential systemic event.
The first sign of real trouble concerned a number of investment legends choosing to close shop and return investors’ capital.
The first real titan to bow out was Stanley Druckenmiller. Druckenmiller maintained average annual gains of nearly 30% for 30 years. He is arguably one of if not the greatest investor of the last three decades.
In 2010, he chose to close shop, foregoing billions in management fees.
Druckenmiller was not alone. In 2011, investment legend Carl Icahn closed his hedge fund to outside investors. Again, here was an investment legend who could lock in billions in investment management fees choosing to close up shop.
He has since stated he is “extremely worried” about stocks. The list continues.
Why Billionaires Are Buying Gold – Billionaire George Soros, for instance, recently sold stocks and instead bought gold and shares of gold mining companies. The world’s central banks are buying gold at the fastest pace in decades, adding nearly 500 tons of gold to their vaults in 2015. The pace increased in 2016; central bank demand in the first three months climbed 28% versus the previous year. A big reason people are piling into gold is the lack of other good options…