Thursday, March 20, 2014

Gold Will be at a New Record High Above $1,925

Let’s step back from the trees for a moment and take a look at the forest. Basically everything is moving in favor of the precious metals. Commodities are rising pretty much across the board. Also, China’s credit crisis is deepening. The government there has bailed out five shadow lenders so far, but there are a lot more problems just beneath the surface.

Europe is facing another crisis as the Italian government looks ready to fall, and Germany’s court basically gave a thumbs down to Mario Draghi’s promise to do “whatever it takes” to save the euro. Japan’s weak currency is creating huge trade deficits, worsened of late by the rising price of crude oil. And these are just some of the obvious problems, not to mention that the Federal Reserve is continuing to print unneeded dollars. The Dollar Index looks ready in the next few days to close at its low for the year.

The bottom line is that 2014 promises to be a great year for everyone who owns physical gold and physical silver. But let’s take it one month at a time. Gold rose 3.2% in January, and is doing well so far in February. A few more months of solid gains, combined with increased momentum as the public once again jumps aboard, and before you know it gold will be at a new record high above $1,925.

- Source, James Turk via King World News, read more here: