Which Direction for Gold and Silver?

Posted by on February 6th 2012 in China, Federal Reserve, General Economy, Gold, India, Monetary Policy, Short Sellers, Silver, Wall Street | 2 comments

Following last Friday’s drop in gold and silver prices with the release of January’s unemployment data — see “John Williams: U.S. unemployment hits 22.5% in alternate estimate” — Tim Iacono asks “Which Way Now For Precious Metals?” Noting that while “some now argue that the metals have come too far, too fast and the Friday correction will continue,” he sees a long-term continuation of two trends that have been driving prices higher:  demand from China and increased gold purchases by central banks.

And citing last week’s Wall St. Journal report that “investors are loading up on gold and silver coins,” Iacono predicts that “you’ll see this trend intensify in the year or two ahead – moderately wealthy Americans seeking to diversify their investment portfolios with physical gold or gold ETFs in light of Fed Chief Ben Bernanke’s continuing ‘punishment’ of U.S. savers with super-low interest rates that have now been extended out until the end of 2014.”

Related Links:  

Dow JonesGreek worries lead Comex gold to end lower

MarketWatch:  Gold falls on dollar strength, lower stocks; silver flat

Wall St. Cheat Sheet:  Unemployment rate drops, should you sell gold?

Hard Assets Investor:  Recovering U.S. economy won’t hurt gold & silver prices

Avery Goodman:  What lies ahead for stocks, gold, silver and platinum after the Greek default?

Peter Brimelow:  Stocks hmmm — gold maybe?

Economic Times/IB TimesHSBC analyst: Expect gold rally to continue due to market uneasiness

Bill Bonner:  How to prolong an inevitable market correction

Gold ScentsDangerous times ahead

SafeHaven:  Was Friday’s price action in gold signaling a top in the S&P 500?

Frank Holmes/The Golden Truth:  In the bullring with gold

Gold & Silver Blog:  Have gold investors become too bullish? Ask the same question at $5,000

Mineweb:  Indian investor interest in silver surging

Daily MailSilver bullet for cancer; The Bank of England’s glittering stash of £156 billion in gold bars

GATA: Get some assets outside the banking system, von Greyerz tells KWN

2 Responses to “Which Direction for Gold and Silver?”

  1. world clock Says:

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