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.”
Dow Jones: Greek 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?
Bill Bonner: How to prolong an inevitable market correction
Gold Scents: Dangerous times ahead
SafeHaven: Was Friday’s price action in gold signaling a top in the S&P 500?
Gold & Silver Blog: Have gold investors become too bullish? Ask the same question at $5,000
Mineweb: Indian investor interest in silver surging
GATA: Get some assets outside the banking system, von Greyerz tells KWN