At the release of my first column, a four-part series of articles for submission in late June, Gold was trading in the $1,384 range and silver at $14.96.
Fast forward to present, and gold has hit a high of $1,534 and silver at $17.52, a 9.7% and 14.6% rise respectively. Even today, in the space of ONE hour, the price of gold and silver were smashed down below $1,500.00 and $17.00. No one sells relentlessly like this, but rather wants to make a profit on their holdings and rationally sells gradually into the market, thereby maximizing their profit. Alas, that is a story for another time about manipulation of price. The GREAT news is, price manipulation is beginning to be lost as the price recovered with massive buying coming in to dwarf this drive-by hit. Their prices are back up above $1,500 and $17 respectively as we write!
If you follow the big money and all the earlier logic laid out for a continuing price rise. Here's an update on all our initial reasoning:
Not only were Greenspan and Bernanke against the FED being fully audited previously, but now the past 4 chairmen ALL talk about the FED "MUST maintain independence" in a recent WSJ article. Do you think President Trump's increased non-stop bashing is beginning to ruffle their feathers? Please see the past comments about the future of the Federal Reserve.
The race for every country has accelerated to weaken their currency, as China devalued theirs earlier this month, which set off a $50 rise in the gold price over 5 days. The U. S. is one of only a FEW countries in the world not having negative interest rates on bonds and sovereign debt because of this race to bottom! ALL countries are devaluing their currency in relation to the dollar. Take a look at the following chart and it is only going to get worse. Look for a continued flight to safety and a historical storehouse of value by the big money of the world... translation? - a continuing rise in the price of gold through the end of the year. Alan Greenspan, is saying that there is, “real potential” for the United States to join all the other countries in the race for a currency devaluation bottom. In this Fortune Magazine article, Greenspan discusses “negative interest rates”
Correspondingly, Congress recently passed a two-year moratorium on the U. S. Debt ceiling... what they are NOT telling you is that the ceiling is now UNLIMITED! Look for our debt to explode by several trillion dollars more over the next two years. Not to sound like a broken record, yet follow the big money and look for gold to increase to $1,900 - $2,000 by year end.
With the historical gold-to-silver ratio that was anywhere from 95/1 to 93/1? In other words, it would take 93-95 ounces of silver to buy 1 ounce of gold. Take a hard look at silver, as this ratio has historically been in the 16/1 - 30/1 range. We have historically seen this ratio come down to 85/1 and it currently sets at about 87/1. This author sees the ratio coming down even further in the months and years ahead. With the growing shortage of silver production to meet demand, a price of $17.50 per ounce is needed by mining companies to just break even, due to inflationary pressures on mining the metal. Can you say higher prices ahead for both metals...especially silver?!
What better time to start than now. Don't let this boat set sail without being on board. There is NO SALES TAX on these purchases and the Bronze Look Staff are ready and willing to help you get started!