Tuesday, January 24, 2012

Where to for Gold and Silver from Here?

Bottom callers are everywhere. Apparently $1535 gold and $26 silver was the bottom of the current correction.

However there are still a few 'analysts' who maintain that $1200 gold and $9 silver is possible. That might be a stretch. Others are calling for $4500 gold and $100 silver by year end. Nice for some, but imagine the state of the financial markets if this occured. Oil may be up around $200. Goodbye to that road trip!

Anyway, the most respected and level headed punters are charting their predictions for gold and silver. Some are saying that the battle royales will be fought at $33 silver and $1665 gold and then $35 and $1705. Once through, the trend higher will have commenced with vigour.

Will all this prophetic noise, though, one should always add the facts of the fundamentals. It helps keep ones mind in focus. Have the Central Banks stopped printing money? No, look at the ECB's balance sheet, it has nearly doubled since September 2011. It is nearly the size of the Federal Reserve's balance sheet. You see, back in November, they used swap lines to the local European banks. Cash for collateral. Only the collateral was horse-dodo. But they didn't let that get in the way of a good hefty money creation binge. The important factor in all this is interest rates. They must be kept low, otherwise it's all over.

This Central Bank policy is inflationary.  Yes, the printing policy might be matching the deflationary effect of bad assets going bust, but it's the ongoing policy signal that is important, and the resaon why preserving wealth with precious metals is paramount.

Gold in New Zealand dollars: $2067.76 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $39.84 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.


The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001


  1. You can never go wrong with gold and silver and they will have a long way to go. It will still have more surprises.

    cash for silver

    1. Yes, I agree. The fundamentals aren't changing. More money printing and world market turmoil to come.