Saturday, July 20, 2013

Even Mainstream Pundits Now Believe In Metals Again

By Anne Trimble

It looks like conventional thinkers are now doing some original re-evaluations because even pundits from the world of conventional investments now are converging on an insight that we've been sharing with you all along: gold and silver are poised for a bounce back in prices.

The reasons for these prospects vary a bit for each metal, but you can be sure of one thing: Investments in God's Money are always and still the right long-term strategy, especially in a world that continues to fray at the seams and where man's fiat-money systems - and investment instruments built on them - look increasingly shaky. This is becoming so obvious, it's hard to ignore.

Yes, the price of gold has actually fallen by one-third from a September 2011 high of around $1,900 an ounce. Nonetheless, as we anticipated way back then, this would certainly change in the fullness of time. So now even secular investors believe that gold has actually gotten to a floor where the fundamentals of investing in metals will begin to bump its cost back up.

Even Uri Landesman, president of Platinum Partners LP, told Investment News, a publication of the investment mainstream if ever there was one believes that we're looking at the end of slide for gold. He thinks that if the stock market keeps going down for the next 12 months, gold will act as a flight to quality as people flee from equities. So he thinks a great trade right now is to long on gold and short stocks.

Furthermore, Landesman and others think gold cannot decrease any further due to the fact that at $1,200 an ounce, it is very close to a breakeven level for mining and manufacturing firms, suggesting that they'll stop pulling gold out of the ground if the rate goes any lower at all -- prompting a reset in pricing that will, consequently, help sustain the value of this commodity.

In regards to silver, we still see a great deal of manipulation of the rate which is just temporarily obscuring the value of the metal and this will, at some point, rectify and disrupt the plans of those that are currently distorting the rate.

The fundamentals remain in place for a surge in silver prices. Whether it comes because of rising industrial demand for the commodity in a global economy that is showing at least a dead-cat bounce, or because the essential value of silver as God's Money, the price of silver will recover. You should bet on it if you haven't already.

It may be time to rethink your financial strategy.

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