Bullion News Review: July 7 – July 12

Gold to Reach US$2000 by the end of the year

David Roche, president and strategist at London- based Independent Strategy says gold is set to reach $2,000 by the end of the year”

Although prices dropped slightly earlier this week after the announcement of strong job growth, Roche still believes the importance of holding gold in their portfolios as international trade tensions will add to the negative sentiment of stock market investors.

A Gold Bull Market Means You Should Buy Silver

In this technical analysis, David Brady analyses the Gold:Silver Ratio throughout history and identifies two key takeaways:

#1 – Gold leads Silver in nascent Bull markets and then Silver catches up and ultimately outperforms Gold.

#2 – Silver tends to lead Gold on the downside, i.e. ahead of major peaks.

Brady concludes that in today’s market, a similar situation is happening.  He suggests that if we are in a gold bull market, which he believes to be the case, we should be buying more silver than gold.

If history is anything to go by, Silver will soon begin to outperform Gold and ultimately pass it by in terms of gains. It did so from 2001-2011 and from 1974-1980, when Gold rose 24x but Silver rose 36x.

Every Portfolio Needs At Least A 10% Gold Holding

With gold reaching its highest level in six years, the slowing of economic growth and geopolitical movements, Mark Mobius says that bullion ‘should always form part of a portfolio, with a holding of at least 10%.’

In times of economic downturn, gold serves as a great hedge as it performs well during period of unrest and therefore helps to protect against potential losses.

He continues:

“Interest rates are going so low, particularly now in Europe, what’s the sense of holding euro when you get a negative rate? You might as well put it into gold, because gold is a much better currency.”

As the AUD continues to drop and interest rates go lower, the historically better-performing alternative, gold, is a smarter way to preserve wealth in an environment with soaring fiat currency debt and plunging interest rates.

Gold’s Long Term Value And The Wisdom of Jesse Livermore

“It was never my thinking that made the big money for me, it was my sitting.”

– Jesse Livermore

In this article Greyerz shares advice and wisdom on what he has learnt through investing in gold over the years.

The biggest investment profits are normally made by investing long term. But the key is to buy when an investment is undervalued and unloved. That reduces the risk substantially and thus the potential return….Since we bought gold in 2002 we have been “sitting.” We didn’t buy gold for speculation and we didn’t buy gold for participating in a price move. Instead, we bought gold for long term capital appreciation in real terms and most importantly for wealth preservation purposes against an extremely precarious world economy and financial system.

…

If the financial system still has major unresolved problems like massive debts and derivatives, then it will still not be the place to put your money. Only when debt and derivatives have imploded and the system is restructured will it be safe to put your money or assets there. Until then, if you can swap your gold for real assets like land, income producing property or  sound businesses at bargain prices, this would be a serious opportunity. History is full of examples of people who used their gold to pick up absolute bargains in periods of economic distress and hyperinflation. 

Prediction: The Global Reset Has Started & The Dollar Will Be Cut In Half

Greg Hunter from USAwatchdog, sat down with Jim Sinclair and Bill Holter to discuss their prediction that the debt reset would start in June.  Sinclair believes the recent jump in gold prices confirms this to be true and says that their will be a two-tier reset in the next few years:

The first will be a devaluing of the dollar… “The reset has already started. . . . The only thing holding up the dollar is its universal use as a contract settlement mechanism in Russia and China and everywhere else, and that simply is not happening anymore. . . . The dollar is going lower. . . . In the first reset, the dollar will get sliced in half.  That means the little guy will get sliced in half in terms of his buying power. You need to look at gold…as a savings account. If the dollar gets sliced in half, you basically double the value (of your gold) if not more… In the second reset, that will take gold to a price where it will balance the ability to pay global debt… Right now, we are definitely going back to the $1,850 and $1,925 area per ounce for gold. The second reset, you can pick any price you want for gold. Pick a high price.”

https://youtu.be/VMCu9GWpgzg