Gold Gone Wild!!
It never ceases to amaze me. It wasn’t but a few weeks ago the mainstream media was telling people not to own gold. Expert after expert was paraded in front of us telling us gold was headed back to $1000 an ounce. Some claims circulated through the digital realm that gold was headed to $700 an ounce.
At the same time, stocks were setting record high after record high and still the cry, “it’s going higher!” “Buy stocks now!!” In hindsight, what should the message have been if the mainstream was really looking out for investor’s best interest? Maybe it should have been something like this. With stocks at record highs, the debt can racing down the road and gold and silver at prices less than it costs to produce them, you should take some of your portfolio and put it into gold and silver. I think you know where you may have heard this before.
Now headlines on a major financial channel are appearing like this. “Gold Gone Wild!” First, gold hasn’t gone wild. Not yet anyway. Surely the stage is set for it to go higher but $90 dollars off a recent low for gold and $1.50 off a recent low for silver, is not wild. Not when it has to move back to about $1300 for gold and $24 for silver, just to be near costs of production. What is wild is the opportunity to own both gold and silver at these ridiculously low prices.
There are countless reports circulating about a black hole in the gold inventories of Western Banks, Comex, The Federal Reserve, the Shanghai Gold Exchange and others. Germany recently asked for their gold back and couldn’t get it. Sounds like the story of missing inventory makes some sense. You can’t give it back to Germany if you don’t have enough inventory to meet the demand.
Circulating alongside of these reports are claims that China and Russia have been secretly stockpiling gold. Right now these are all stories. But, it’s very curious that China has not reported its official gold reserves since 2009. At that time it had been 6 years between reports. They are due for another report. This time, if the stories of declining inventories and secret China gold buying are true, China will report massive increases in their official reserves and it will prove there is little gold left in the West.
That’s when gold could go wild! Are you ready?