Commodity Trade Mantra

Posts Tagged ‘Gold and Silver Mining’

This Confirms the Gigantic Potential of the Next Gold Price Rally

When you calculate the peak gold price from 1980 of $850 & adjust it to official inflation, you get a gold price of about $2,500. That’s the low-end as a new prediction. Not every cycle comes up with a huge rise. Especially the long-lasting bear markets brought the gold price weaker tops. The cycle we’re in now is a secular uptrend which gives the gold price a gigantic potential.

Silver Hasn’t Flashed This “Buy” Signal in Almost a Decade

Since peaking in 2011, silver had dropped 72%…far more than gold’s 45% drop. An asset carves a bottom when it stops falling, forms a bottom for a period of time & starts moving higher. This signals that buyers have stepped in and given the price a “floor. Like gold, silver has now completed its carved bottom. We think gold is heading much higher, but silver could go even higher.

The End of Gold and Silver Mining

Given exploding costs and “time to production” (from discovery to commercial mining) the financial hell rained down on the industry by seven years of gold, silver and mining share suppression will not be overcome by any circumstance. Thus, while the “end of mining” may not occur literally, it by all and intents already has practically.

Tapering Is Good for Gold

Gold prices fell lot in 2013, but quantitative easing was still going strong then. The Fed’s reduction of QE from 85 billion to $35 billion per month indicates that banks are becoming healthier, which means they will begin to push money out into the broad economy. Inflation would result – which is a gold positive.

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