Sunday, September 04, 2016

The Coming Gold Super-Spike
"I consider gold a form of money. That means I investigate price movements in gold the same way I investigate moves in any other global currency — and find the best way for you to play it. Right now, if you understand physical gold flows, you could stand to make a fortune in the months and years ahead .. The key to seeing the gold-buying panic in advance is to follow the flows of physical gold. Once the price of physical gold starts to move up on basic supply and demand fundamentals, the stage is set for corresponding increases in paper gold prices. As more and more paper gold holders turn from the paper market to obtain physical gold, which is already in short supply in the physical market, we’ll see the beginning of a price super-spike .. Gold prices are set to skyrocket based on a combination of supply and demand fundamentals and the ETF pro-cyclical feedback loop. If gold goes up, the prices of gold mining stocks go up even faster. In effect, buying gold mining stocks is a leveraged bet on the price of gold itself."
- Jim Rickards*
LINK HERE to the essay

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