Gold’s Buyable Bounce

Posted on November 13, 2012 by Angela Stern

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Your reasons for owning gold don’t matter to me right now. It could be that you want to protect yourself from the declining dollar. Or perhaps you believe foreign demand will increase prices. Readers of these pages will have plenty of ammo for a bullish gold argument at hand. So, rather than lecture you on why you should have your very own stash of shiny yellow metal Instead, I want to help you buy it for the best possible price.

Even if you’re a long-term investor, it’s important for you to time your gold purchase in order to get the most out of the investment. And right now could well be an excellent buying opportunity…

Shortly after gold started to move higher in September, I told my readers about three new buying opportunities to exploit before gold attempts to make new all-time highs. Despite its recent breakout, gold had simply moved too far, too fast. That’s why I thought you should wait for a better-timed entry, instead of getting caught chasing the price.

Here’s what I wrote in September:

“Gold is running out of gas as it approaches resistance at $1,800. It will probably need to rest or retrace before attacking $1,800…

“If and when a pullback occurs, give gold several days to a couple of weeks to move down and/or sideways. Eventually, the price will tell you where and when support will be.

“Once gold moves higher from its new support level, you will have found your low-risk entry point. If I had to guess right now, I would say you might have an opportunity to buy near $1,725…”

What Role (if any) will Having Elected an Incumbent Democrat Have on Short-Term Prices of Gold and Silver?

Posted on November 13, 2012 by Angela Stern

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PMBG Announces Expected Outcomes Coming out of the Gates of last Week’s Election

Several IRA account holders are putting gold into their IRAs as a part of retirement asset diversification, which can even out the value of their portfolio even during a weak period in the stock market. Precious Metal Brokerage Group International (PMBG) presents their insight into how the recent election may or may not affect those who invest in Gold IRAs.

With the presidential election decided, the market responded ahead of, during and after Election Day itself. Gold is expected to continue its rise in 2013, reaching up to the $2,000 mark (conservatively) – or likely higher (per most analyst’s projections). On Oct. 23, Deutsche Bank analysts called for gold to exceed $2,200 an ounce next year. This came in light of the stimulus measures by central banks. (http://beforeitsnews.com/gold-and-precious-metals/2012/11/gold-silver-and-the-us-election-2455194.html)

See Full Press Release Here: http://www.prweb.com/releases/2012/11/prweb10112673.htm

What role (if any) will electing an incumbent Democrat or a 1st-term Republican have on short-term prices of Gold and Silver?

Posted on November 5, 2012 by Angela Stern

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PMBG announces expected outcomes coming out of the gates of next week’s election!

Several IRA account holders are putting gold into their IRAs as a part of fund diversification, which can even out the value of their portfolio even during a weak period in the stock market. Precious Metal Brokerage Group International (PMBG) presents their insight into how to invest in gold IRAs.

With the presidential election less than one week away, market watchers are estimating what kind of impact a Mitt Romney win would have on the markets, including gold prices. Gold is expected to continue its rise in 2013, reaching up to the $2,000 mark – or higher. On Oct. 23, Deutsche Bank analysts called for gold to exceed $2,200 an ounce next year. This came in light of the stimulus measures by central banks. (http://beforeitsnews.com/gold-and-precious-metals/2012/11/gold-silver-and-the-us-election-2455194.html)

Gold prices generally languish in a year leading up to a U.S. presidential election and silver prices tend to weaken as well. Bad economic news and geopolitical concerns spur investors to buy gold and silver. “For one thing, the incumbent tries to keep the public focused on any positive economic news, and that isn’t good for gold,” says Terry Hanlon, president of Dillon Gage Metals in Dallas, adding that “If the past is any guide, this may be a good time to invest in precious metal coins like U.S. gold and silver American Eagles or Canadian Maple Leafs, looking for them to rise in value after the November election.”

Reed Full Press Release Here: http://www.prweb.com/releases/2012/11/prweb10092674.htm

Can Gold Really Cross the $2,500 Mark by Q3 2013?

Posted on October 24, 2012 by Angela Stern

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PMBG Announces Why the Upcoming “Tier 1-Cash Equivalent” Status change for Gold Makes It Very Possible

Gold has historically been classified as a Tier 3 asset since it was downgraded in the 1980s by a committee of banking supervisory authorities – Basel Committee of Bank Supervision (BCBS), established by the central bank governors of the Group of Ten countries in 1974. This same committee is looking to make gold the new “zero-risk” collateral. As the only non-Tier 1 asset to be universally regarded by investors the world over as a “flight-to-safety” asset, gold is unique, and when moved from a Tier 3 to Tier 1 asset it will have significant implications.

According to Business Insider, gold will officially become considered a “currency” again, at its new market-value, and no longer a mere commodity when the new rules become fully put into effect. The value of gold will likely soar because everyone will recognize that gold has been undervalued as a mere “commodity.” “This information has not yet been factored into gold prices,” says Eric Zuesse, the author of the article.

The Basel Committee for Bank Supervision (BCBS), a global banking regulatory group that meets in the small mountain town of Basel, Switzerland, every few years is a group of bankers who are responsible for setting global banking standards. They decide things like which assets qualify as Tier 1 or “zero-risk” assets, how much loan loss reserves banks need to hold, and how much leverage banks can take on. As the maker of global capital requirements and whose Basel III rules form the basis for global bank regulation is looking to make gold a bank capital Tier 1 asset. As a result of the global debt crisis in 2008, banks had more stringent Tier 1 collateral (or assets) to loans requirements implemented. The new rules require 7% Tier 1 collateral of loans be held versus 2% prior to the debt crisis.

Read Full Press Release Here: http://www.prweb.com/releases/2012/10/prweb10029252.htm

Your Gold And Silver Questions Answered!

Posted on October 21, 2012 by Angela Stern

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Gold and silver prices recently moved upward. Thus, the mailbox received questions about where precious metal prices are heading. “Will gold and silver prices keep moving up?” asked one reader. “Do you think that gold prices will fall back?” asked another reader. “And when?” he wanted to know. “Why shouldn’t gold and silver just keep trading in the current range?” asked a third reader. My tongue-in-cheek answer to all three questions is “Yes.” Let’s start with a look at gold…

Look at the 10-year price trend. For more than a decade, we’ve lived with generally rising gold prices. This was certainly the case for the first years of the 2000s. And precious metal prices have risen strongly since I started writing Outstanding Investments in 2007. Focusing on 2012, gold prices have bounced around between $1,600–1,750 per ounce. That range may annoy short-term traders, but in my view the spread is akin to background noise for long-term investors. I’ll give away the ending to the story by telling you that I believe there’s more upside coming to gold. Lots more.

Silver Trends

How about the 10-year trend for the price of silver? Let’s start with the chart (below), which is similar to that for gold, although not exactly a match:

Let’s discuss that last point, because I’ve had questions about it from readers. Unlike gold, silver is widely used in industries like chemicals and electronics, as well as jewelry and bullion. Thus, silver pricing is more sensitive to macroeconomic swings — something we saw all through the 2008–09 global crash and ensuing weak recovery.

To amplify that point, many industrial applications “consume” silver, in that the basic metal gets incorporated into compounds that don’t recycle. For example, consider how many hundreds of millions of cellphones and computer keyboards have gone out with the trash into landfills over the past two decades. (C’mon. You know that you’ve tossed a few out!) Each item contained some amount of silver, as often as not a small amount in the nature of a fraction of an ounce. By comparison with silver, one of the most heavily recycled metals in the world is lead (no pun intended). Just based on weight of materials alone, almost every car battery on the planet has enough value that people recycle the innards. Thus, lead recycling offers quite a contrast with many “throwaway” products that contain silver. So as for the basic dynamics of silver prices?