Financial analysts around the world are racing to revise their gold price targets higher… Way higher.
Many are recommending allocating more of their portfolios to precious metals.
Maybe they are starting to take notice of some troubling fiscal and monetary developments.
June’s gold breakout, taking it to over $1,442 was like a wake-up call for many of them. The technical picture is incredibly strong. Even after pulling back to $1,400 an ounce, gold finished last week $74 over its 50-day moving average and $119 over its 200-day moving average.
Maybe somebody noticed that “the everything bubble” engineered by the Federal Reserve and its fellow central banks includes not just a stock market bubble, but a massive bond bubble as well. The bond bubble has resulted in $13.4 trillion in global negative yielding debt!
Negative yielding debt means that when you buy a bond, for say $1,000, at maturity it is redeemed for less than $1,000 dollars.
How long will individuals and even institutions buy bonds with negative yields? I don’t want any and you probably don’t either. It is a market anomaly so great that it fairly screams for informed people to get out of the way before it breaks. To get out of the way of not only bonds but stocks as well.
Maybe they finally noticed all the politicians running around the country promising free goodies to everybody.
Maybe they are starting to pay attention to US spending and debt.
If financial analysts and portfolio managers around the world are starting to notice these things, at last, the target price for gold can barely be computed.
Right now, as John Rubino notes, the financial world’s total invested capital in gold is a mere one percent. What happens when that share rises as it inevitable will? Long-time Templeton Financial fund manager Mark Mobius says portfolios should contain closer to 10 percent gold.
That, says Rubino, would send gold to the moon!
If you have noticed any of these troubling fiscal and monetary developments yourself, call or stop by our offices to discuss ways of protecting yourself and your family with prudent precious metals investments.