The Gold Bull is Off and Running!

12 Jan

The Gold Bull is Off and Running!

As our regular clients and readers know, we, as well as others, identified the birth of the new gold bull market last year.  

Now there is additional new evidence that the bull is off and running.

Gold reached all-time highs last year in key foreign currencies:  the pound, the yen, and both the Canadian and Australian dollars.

Just days ago the price of gold hit an all-time high in the Euro!

But precious metals prices are still really attractive at these levels for Americans.  That’s because gold and silver are well below their all-time highs in terms of dollars.  

gold bars bullion

For now.

The new gold bull market is still young.  It has a long way to go!

One author of books on gold, Jim Rickards, says if the authorities let a debt crisis materialize, we can “watch gold soar to $14,000 per ounce or higher, not because they wanted it to but because the system is out of control.”

A British fund manager has a new call, saying that “a bullish target for $7,166 is both logical and plausible.”

Last week with the flare-up of US/Iran hostilities, gold hit $1613.  That was on Tuesday.   When gold closed Wednesday at $1557 we put out an Alert Recommendation to take advantage of the price break and add to your gold and silver positions.

How high gold will eventually go, we are not prepared to say.  After all, the authorities will face many new decisions between now and then.  We have only faint – or no – hope that they will make wise decisions.  Their foolish decisions are what will drive gold much higher, but we will report on them to you along the way, in any case.    

Meanwhile, we will leave you this additional bit of statistical corroboration for one of the chief dynamics that drive gold bull markets:  Fed money pumping reached a breathtaking $413 billion last quarter.  

That means the Fed grew its balance sheet by more than ten percent in three months.  

That’s a lot of money created out of thin air.  

jim-sign

And that is not a wise decision.