Alot of bullion market analysts/traders are pondering the range of
$740ish by Christmas time. Many more are talking $800ish by spring.
A smaller segment is preaching $1000 or more by spring. And of
course, there are always those crying that ‘the sky is falling’, and
$2000/0z is eminent, but those cries are not built on solid
foundational data, but mere speculation, fear-mongering, and greed.
Todays high was in the range of a 26 yr high. And all the foundation
is there for the market to keep right on going up for a while.
The subprime mortgage scenario is placing alot of pressure on the
market to keep heading in an upward tick. USA investors in the
subprime market are looking for safety so they are bailing out of
stocks and bonds as we speak. Addionally, as the Fed Reserve pours
dollars(freshly printed and borrowed) in, to attempt a rescue of the
subprime market, this creates a continual devaluation of US
currency(ongoing for a few years now and growing faster), against
foreign currencies, which means inflated prices on every single item
you buy that is imported from another country. ( includes gas,
clothing, electronics, automotive, just about anything thats not
stamped “Made in the USA”. Also foreign money invested in US mortgage
business are jerking their cash out and placing it in safer markets
such as precious metals. This in itself will create a strong upward
trend. If you are planning any larger purchases for inventory, I
don’t suggest hesitating as the general consensus among active
bullion traders is that its probably never coming back down again.
But this is a correction that is sorely long overdue. Many feel the
gold market has been artificially held down by the large financial
powers of the world for a number of years anyway, and has now reached
a point where noone can hold it back.
One way to profit from such a strong upward market is to start
purchasing scrap, or old, broken, well-worn jewelry and silver coins,
etc, off the street. Its amazing how many people have purchased
Krugerands, large silver ingots, etc as "chicken little’ investments,
and now are wondering how to get their money back out of it. Little
old ladies often will have stacks of Krugerands big enough to choke a
horse because hubby encouraged the purchase as part of a retirement
plan gone awry- knew where to buy it but not an inkling where to sell
it. Now the widow is stuck with several thousand $ worth of coins
that she can’t even buy bread or gasoline with, and she would be
happy to sell for less than the current market value. The more TV
news talks about the high gold markets, the more people decide that
now is the time to sell. An excellent source for diamonds, etc too.
Ed in Kokomo