Based on Jeb Handwerger with ETF Daily News, the fundamentals for gold (NYSEARCA:GLD)
Only this previous summer time, retail investors held their biggest cash position in years. Today, they are looking for to hedge the coming inflation crisis because the Central Banks aim to “increase inflation to promote spending and investing” in hopes which will produce more employment possibilities by giving retailers and small companies incentive to employ.
Following QE2, juniors under performed; but things are turning about. They have shattered a steady 18-month down trend and are now outperforming gold and silver bullion.
In the month of September alone, traders place $306.7 million toward Market Vectors Gold Miners as well as $181.9 million toward Market Vectors Junior Gold Miners. Ever since August, investors have placed more cash in miner investments than bullion.
Ever since the conclusion of QE2, gold outperformed silver, the big producers (NYSEARCA:GDX)
The majors are starving for growth and are sitting on big money positions that are losing worth as Central Banks print dollars. A lot of dollars chasing dwindling supplies of precious metals might trigger a significant price spike. The majors should invest in the junior miners that in a bull marketplace could provide excellent leverage as well as move exponentially greater in percentage terms than bullion.
Marc Faber - well-known investor, commentator as well as publisher of the Gloom, Boom and Doom Report, is moving bearish on just about every thing. Dr. Doom is living up to his identify. When on a call to reporters from Thailand, he discussed his 100% certainty that America will enter an economic depression. “I am now bearish about practically all assets near term. I think we're entering a correction time, where there will be some disappointment, where stock markets -- from the recent highs -- can easily drop 20%.” Our recommendation is to buy gold and buy silver today before the gold price and silver prices rise rapidly very soon. How High Will Silver Go? Learn More Kitco Silver >> http://silverdollar.cc




