Thursday, July 23, 2015

Jim Rickards' Take on China's Gold

Jim has a different take on China's gold than many gold bugs and bloggers. I find his explanation and analysis makes a lot of sense and in line with the current Chinese political and fiscal policies.

What is China trying to do? What rules are they to play along? Best of all, his final advice on gold price:

"It will go higher when all central banks, China’s and the U.S.’ included, confront the next global liquidity crisis, worse than the one in 2008, and individual citizens stampede into gold to preserve wealth in a world that has lost confidence in all central banks.

When that happens, physical gold may not be available at all. The time to build your personal gold reserve is now."

Wednesday, July 22, 2015

Top Money Managers Deemed Gold Undervalued First Time in 5 Years


With the current beaten gold price (paper market), many gold stocks have been slammed and oversold.  This is attracting attention from a number of top money managers to turn to gold.  According to the BofA Merrill Lynch Fund Manager Survey for July, "gold judged undervalued for first time in five years."

In fact, gold has been undervalued for a long time with all the money printing by the various central banks around the world.  Gold price may continue to drop as the Fed keeps its talk on interest rate rising, which is causing the US Dollar to rise.  But as soon as they decide to delay this decision in view of the current deflationary economic situation around the world, gold price will shoot up again as people move away from the US Dollar into hard assets like gold and silver.

So be sure you own some physical gold or silver and mining stocks while they are much hated.