Gold ~ Will it go some more Lower before it again goes much Higher ?
This is a Million Dollar Question that can make you a Million Dollars !
I took you on gold run from US $ 500/oz levels from 2005/6 to US $ 1900 last year just short of my second long term target of US $ 2000 ~ the first of US $ 1000 was breached in 2009
Gold is now US $ 1581 an ounce after a golden ten year run
Gold clearly thrived as USA kept it’s US $ printing press working overtime for years to fund it’s deficits ~ Look at this revealing chart below ~ It shows the direct co-relation between the increasing supply of the US $ through new currency printing in trillions of Dollars in the last six to seven years and the increasing price of Gold
USA is clearly on a severe back foot on the Economic Front threatened with Huge Debt and Deficits and is currently in a Long Term and Painful Deleveraging Mode ~ The Road through Quantitative Easing has meant excessive supply of Funds to buy up Bonds ~ The Currency Printing Press has been working 24 hours for several years now ~ the Price of Gold has risen in direct co- relation to this increase in Money Supply
Offence is the Best Form of Defence seems to be USA’s Response and it is becoming increasingly clear that it has implemented a multi pronged aggressive media propaganda into advanced play ~ both ,on the economic and on the political front
Check this multi pronged and well planned Pointing Fingers by USA with the use of a powerful US Media
- USA President Obama openly now points fingers at India for not opening out FDI
- USA continues to scream publicly at China for keeping it’s Yuan deliberately undervalued ~ probably actually revelling in having to pay off a devalued dollar debt in the future when US $ begins to reverse again after it’s recent surge
- …and an even more serious accusation that USA is actually supporting what they term as ‘Arab Spring’ and funding and arming Criminal gangs and Rebels to destabilise Arab Regimes or even directly involving Military or NATO Intervention in these Arab Nations ~ The Iraq Invasion ~ The Fall of Libya ~ and now Syria are all prime instances ~ Seema Mustafa in her column in DNA today
asserts that it is less for ushering in Democracy in these Islamic States and more for sanitising the Arab Region for their ally, Israel
The US $ may continue to hold and even strengthen a little more over the next few months as US President Elections come closer in November 2012,before it again begins to shows it’s inherent weakness during the painful deleveraging process and the continuing excessive printing of Currency to finance Deficits
Gold may therefore continue to hold too or even seek a lower level to US $ 1400/oz in the short term before it resumes it’s march back up to show it’s inherent strength
Keeping an eye on 2015,stay invested in Gold ~ Buy some more on any significant fall ~ because if Nouriel Roubini’s ‘Perfect Storm’ 2013 scenario plays out,you’ll reap a bonanza in Gold even sooner ~ Roubini’s betting on a worsening Eurozone,China growth ebbing,USA Recovery weakening and Military Conflict involving Iran all climaxing into a ‘Perfect Storm’ next year in 2013
I have been a strong advocate of Gold from 2005 and remain one even now ~ Clients and Workshop Participants in India and Overseas will support this ~ even those disbelieving Private Bank Wealth Managers who I addressed for two whole days a few years ago and told them they would double monies in Gold inside three years for their High Net Worth Clients ~ many of them since have wanted to work for and with me !