Thursday, May 26, 2016

Michael Belkin Warns:
Central Banks Are Lighting A Rocket 
Under The Gold Price
"Gold, silver and gold/silver mining stocks have commenced a new long-term bull market. It’s like buying the Nasdaq in April 2009. Meanwhile, global stock indexes have been in a broad topping process for years, our global composite stock index stands at the same level as it did in December 2013, two and one half years ago. The trend has not been your friend in stock indexes, every rally has fizzled out for buy-and-hold stock market investors .. Gold is a currency, it is held as a reserve asset by central banks along with their FX holdings. QE, ZIRP and negative interest rates (NIRP) have destroyed central bank credibility and the value of major reserve currencies (dollar, euro, yen, yuan) .. The failed policies of central bank credit expansion are lighting a rocket under the gold price, the asset that central banks can’t devalue. Precious metals mining stocks are leveraged to a rise in the gold price, profit margins and mineable reserves surge when precious metals prices rally. These are the conditions for a long-term bull market, in which dip-buying is rewarded with constantly higher prices. We continue to recommend the accumulation of gold and silver mining stocks on brief pullbacks. Gold is the central bank put."
link here to the article

2 comments:

Anonymous said...



Miner Sees Silver Price Surging Ninefold as Global Gadgets Boom
Top-performing stock First Majestic forecasts metal at $140/oz
Price will climb as users seek to lock in supplies, CEO says

A major Japanese electronics maker approached First Majestic Silver Corp. for the first time last month seeking to lock in future stock, a sign of supply concerns that could boost the metal’s price ninefold, according to the best-performing producer of the metal.

“For an electronics manufacturer to come directly to us -- that tells me something is changing in the market,” said Keith Neumeyer, chief executive officer of First Majestic, the top stock in Canada and among its global peers this year. “I think we’ll see three-digit silver,” he said, predicting the metal could surge to $140 an ounce by as early as 2019.
That’s a bold forecast.http://www.bloomberg.com/news/articles/2016-05-26/miner-sees-silver-price-surging-ninefold-as-global-gadgets-boom

Anonymous said...

This CEO has an axe to grind ...