Gold will rally to record highs this summer, Women's Investment Network chief predicts - Wealth Management

"Over the summer we're going to hit the debt-ceiling crisis," Women's Investment Network CEO Natalie Pace says in a May 29 Fox Business interview predicting a summer rebound -- to $1,600 by August -- for gold. 

"We're going to have a horrible GDP report. It's predicted to be 1.4% this year, according to CBO. And we also have a potential debt downgrade, and I think that's going to make investors scared of Wall Street and they'll start falling back in love with gold. ...

"Gold went to its high after our downgrade (by Standard and Poor's in August 2011). ... I predict that will happen again. So gold is an emotional investment. When people believe in Wall Street, they're in Wall Street. When they don't, they're in gold. ...

"The first thing that'll happen is people will fall out of love with Wall Street once we get that horrible GDP report and once the debt-ceiling crisis becomes headlines. We've already breached the debt ceiling. No one's talking about it, but they will when we stop paying our bills and that's Labor Day. And Fitch could downgrade us in there too -- that's a triple whammy. So I think that's the first level that will send us back to the highs of $1,900. Once interest rates start to creep us -- that probably won't happen this year -- we could go much higher." 

More information can be found online at http://www.goldbullionadvisors.com

Record gold demand in Asia could offset ETF outflows in the West - Wealth Management

Asian gold demand from this April to June will reach a quarterly record as bullion consumers in the region take possession of supply freed up by selling from exchange-traded funds (ETFs), the World Gold Council said on Wednesday.

Gold prices fell to their lowest in more than two years at $1,321.35 an ounce in mid-April on signs of economic improvement in main markets and fears that central banks around the world could start to curtail their bullion-friendly policy measures.

The move scared investors in the West, triggering a sharp liquidation of speculative and ETF positions. But lower prices also prompted strong physical demand from price-sensitive countries such as India and China, which together account for more than 50 percent of consumer demand for bullion.

"Asian markets will see record quarterly totals of gold demand in the second quarter of 2013," WGC Managing Director Marcus Grubb said.

"Even if ETF outflows continue in the United States, it is quite likely that the gold previously held in ETFs will find a ready market among Indian, Chinese and Middle Eastern consumers who are taking a long-term view on the prospects for gold."

More information can be found online at http://www.goldbullionadvisors.com

"Smart money" is most bullish on gold in 5 years - Wealth Management

"A significant intermediate-term bottom is forming in the gold market," Euro Pacific argues

Commercial participants in the gold market, also known as "smart money" given that they work in the industry as opposed to being speculative trend followers, are the most bullish on gold in nearly five years.

As prices declined over the last few months, commercials -- those involved in the production, processing or merchandising of a commodity -- have been busy buying futures contracts and covering short positions, according to data from the Commodity Futures Trading Commission.

Their position rose from a low of a net short 269,270 contracts in October 2012 to the present net short position of 84,122, notes a report from Euro Pacific Canada today. This means commercials initiated new long positions, and covered previous shorts, resulting in an increase in their total net position by just over 185,000 contracts.

It's a different case for the other two groups that the CFTC tracks in the commodity futures markets.

Large traders, mostly made up of hedge funds that are often trend followers, are currently net long 83,726 contracts -- the most bearish reading since the October 2008 bottom. The group tends to be the most bearish at market bottoms and the most bullish at market tops, suggests Euro Pacific Canada analyst Dima Kash.

The third group, small traders, are those that control a very small portion of open interest in futures contracts, but their actions tend to help gauge retail sentiment nonetheless. Historically, they have been on the wrong side of the gold market at key inflection points, according to Mr. Kash. The group this month had a net short position of 1,704 contracts, an extremely bearish reading not seen since February 2001 when the gold market was about to begin its decade-long bull-market run.

Mr. Kash's conclusion? "The current dynamics between the three groups signal that a significant intermediate-term bottom is forming in the gold market. This does not necessarily mean that prices cannot head lower, but it does mean that prices are attracting commercial buying interest -- the smart money -- at levels not seen since the financial crisis when gold declined from about $1,000 an ounce and hit a critical low at about $700 an ounce," he said.

More information can be found online at http://www.goldbullionadvisors.com

"People still believe in gold, they still want it," notes fund manager - Wealth Management

Franklin Templeton exec says bullion still relevant in diversified portfolios

At a time when gold is in a bear market amid record outflows from investor holdings, bullion remains relevant in portfolios as inflation may accelerate, the U.S. dollar weaken and global economic growth stall, according to Franklin Templeton Investments.

"As part of an overall diversified portfolio, gold does serve a role because some of these things are still real risks as we look forward over the next 12 months," said portfolio manager Steve Land. ...

"When you're at your best health, you're feeling good, that's the time when your insurance policies are actually the cheapest," said Land. "It's been very volatile and painful on the way down but as a whole, a small allocation to gold as part of an overall portfolio still serves its purpose. Once you find out you're sick it's going to cost a lot more, it's going to be a lot more expensive." ...

"I've been very encouraged by the very significant uptick in demand from coins and jewelry," said Land. "People still believe in gold, they still want it. The next time around when investment interest comes back to the sector, it's going to be that much harder to price that gold out of people's hands and recreate some of those bars to fill the ETF vaults with."

More information can be found online at http://www.goldbullionadvisors.com

5 reasons why the gold bulls are right - Wealth Management

No. 1: No major central-bank bullion sales in Europe are on the horizon

1)  Fears are receding in peripheral Europe: The recent collapse in gold prices was precipitated by news that Cyprus may sell its gold holdings to assist in the recovery from its banking crisis. Panic spread over fears that the rest of peripheral Europe would sell bullion reserves but no news has emerged to match those fears. Yet.

2) Equities could tumble: Record strength in stock indices such as the Dow Jones Industrial Average is not supported by macroeconomic fundamentals. Sooner or later, stock markets will correct and gold will be back in vogue.

3) India's monsoon season won't last forever: Inhabitants of the world's second most populous country are also the biggest buyers of gold jewellery. The problem is, a large part of that is purchased to celebrate weddings, and nobody wants to get married in the rain. That suggests there is a seasonal element to gold's current weakness, so in the Fall demand will be back again. India's overall population growth will contribute to strong long-term demand.

4) The important Indian demand for gold isn't all about jewellery: In some jurisdictions, notably India, gold counts as part of a bank's liquidity ratio. If the asset base of banks in those jurisdictions grows, so too will demand for gold.

5) Retail investors are still buying: Despite what financial experts say - that the world's economy is in recovery so gold is no longer needed as a hedge -- retail investors are treating gold's current travails as a buying opportunity. On the back of April's 20% drop in gold prices, CoinNews.net reported that sales of gold bullion coins rose 40%.

More information can be found online at http://www.goldbullionadvisors.com

China's gold demand jumped to record in 1st quarter, trade council confirms - Wealth Managers

"Chinese investors, discouraged by the weak domestic stock market, increasingly relied on gold"

China's gold demand jumped to a record in the first quarter as sentiment regarding the country's economy underpinned consumption during the Lunar New Year, according to a report today by the World Gold Council.

Consumption reached 294.3 metric tons in the first three months, up 20 percent from a year earlier, the council said. Purchases of bars and coins grew at a faster pace than jewelry consumption and more than doubled the five-year quarterly average, the report said. ...

The record consumption "was more pronounced due to a renewed confidence in China's economic prospects and the removal of uncertainty created by the transfer of Chinese leadership during the closing months of 2012," according to the report.

"Chinese investors, discouraged by the weak domestic stock market, increasingly relied on gold to fulfill their investment needs," the industry group said. "The announcement in February of impending controls to be placed on the property market further emphasize gold's investment properties going forward."

More information can be found online at http://www.goldbullionadvisors.com

"Booming stock markets and weak currencies" signal future hyperinflation - Wealth Managers

"Despite the recent weakness in the metals, I wouldn't be surprised to see new highs in 2013," Matterhorn exec Egon von Greyerz says

Stock markets worldwide are booming, but these booming markets have nothing to do with economic prospects. Prospects in the world are worse than ever, and this includes the US, Europe, Japan and China. None of these countries have a booming economy. What they have is massive debt and accelerating deficits. ...

As we know, government debt in Japan is 200% of GDP which is the highest in the world. Total debt in Japan is around 500% of GDP and it's accelerating. The Japanese bond market is also a disaster and will only get worse. Eventually Japanese bonds will become worthless. ...

What we are seeing here with the booming stock markets and weak currencies is a clear sign of the hyperinflation that is guaranteed to come. The booming stock market is the first sign of hyperinflation. That is always the case.

As the currency continues to fall, inflation in the economy will only increase. So starts the vicious circle of falling bond prices and currencies, leading to a hyperinflationary depression. It looks like Japan will be the first to encounter this, but many will follow.  

The US stock market is also booming due to printed money. It has nothing to do with the economic prospects in the US whatsoever. The US deficit is continuing to increase and the debt is looking like it will increase by $1.5 trillion. The dollar is temporarily stronger, only because other currencies are weaker. ...

Despite the recent weakness in the metals, I wouldn't be surprised to see new highs in 2013.  What investors need to focus on is the fact that hyperinflation is coming. This is becoming clearer and clearer by the day. So they must own physical gold and silver and store it outside of the banking system.

More information can be found online at http://www.goldbullionadvisors.com

"We will see $2,000 gold," predicts Grandich Letter publisher - Wealth Management

Even after this takedown, I still don't believe that the secular bull market that's been ongoing for 12 years has come to an end. I still believe we'll have a "2" in front of the gold price before it ends. We're going to have to get to $2,000 before there's any decision on my part about the end of the bull run. ...

The vast majority of so-called professional advisers and the media simply hate gold. Expecting them to rally around it would be similar to going into a Ford dealer and expecting to be told, "If you really want a good car go down the block to the Chevy dealer."

I would be worried about being a gold bear right now. You have to ask yourself what is it going to take to really crack the market? We had an onslaught of bear forecasts. We had an onslaught of selling in the paper market. Yet, as we speak, much of that decline has already been taken back. There's going to be a reversal and these bears are going to have to run for cover. ...

The U.S. stock market is nearing the end of the single largest bear market rally in history. This is what I predicted in 2009 would occur. There won't be a collapse as soon as it does top out because quantitative easing will create a cushion. With the economy rolling over again, I don't foresee the end of quantitative easing.

There will probably be some more shenanigans by the Federal Reserve to give another kick to the can, but the time will come when the world realizes that we cannot afford to pay back what we owe, much less the interest. That's when the financial markets will be hit hard. That's when there will be a collapse of the bond market and a very sharp decline for general equities.

In the meantime, we will see $2,000 gold. The recent gold takedown was not driven by fundamentals. It was not fun living through it, but it was actually something that is going to fortify this secular bull market that's been underway for 12 years and is going to mark the next leg of the bull run for gold.

More information can be found online at http://www.goldbullionadvisors.com

"Gold Bullion is the best scarce commodity in the world" - Wealth Managers

 The recent sharp decline in gold prices has shaken the confidence of many people. Don't worry. The price of gold has dipped, but will rise to new heights soon. In the long term, gold prices will rise far more than inflation. For the masses, gold is the best inflation hedge. It is the best weapon for the little guy to fight central banks that help a few to rob many. 

Yes, gold doesn't bear interest. Many, including Warren Buffett, belittle its investment value. But, paintings or antiques don't bear interest either. When money supply is rising, anything scarce tends to rise in value. Gold is the best scarce commodity in the world. 

There are more artists that can paint more paintings every day. 80% of the world's gold has already been extracted. The remaining 20% will be dug up in the next 20 years. The money supply will grow forever. But the gold supply can grow only by 25% and no more. 

The income growth in emerging economies will vastly increase with gold demand. When people realize how little gold the world has left, the price will skyrocket. If you don't know how to preserve your wealth in an inflationary environment, you should accumulate gold. When the price comes down, just as it did two weeks ago, just buy more.

More information can be found online at http://www.goldbullionadvisors.com

"Currently the price of gold bullion is undervalued by $900, or 62%" - Wealth Managers

The only conclusion we can make from the response to lower prices by the buyers of physical gold and silver is that "bad" money is being converted into "good" money because the perception is that gold and silver as good money are significantly undervalued in relation to paper dollars issued by the government and currently printed by the Fed at the rate of $85 billion per month, or a little over $1 trillion for all of 2013.

The question is, at what price for gold and silver would investors stop converting fiat paper currency into physical metal? If we could somehow figure out the answer to that question, we could benchmark what kind of returns can be made from investing in gold and silver right now.

One way to do this would be to measure the intrinsic value of 1 oz. of gold in relation to the ongoing devaluation of the U.S. dollar. At its price peak in 1980, gold hit $875. If we use just the Government measure of CPI over that time period of 3% -- unarguably a conservative method of measuring the amount the dollar has been devalued since then -- the current implied price of gold in relation to that measured rate of inflation would be $2350/oz. The gold/silver ratio in 1980 at the peak was 17.5. Using that ratio to derive an implied price of silver yields $134/oz for silver.

In other words, currently the price of gold is undervalued by $900, or 62%, and silver is undervalued by 570%.

More information can be found online at http://www.goldbullionadvisors.com

Gold's "fundamental story is intact, and the trend is higher from here," Tangent exec predicts - Wealth Managers

"In the long run the fundamentals usually prevail, but in the short term the technicals can dominate," Tangent Capital exec Jim Rickards says of gold's correction in a May 2 interview. 

"To me, what's going on is there's a transition from weak hands to strong hands. The weak hands are Comex traders who have margin calls and stops, hedge funds that have non-permanent capital and mark to market, newbies in GLD -- they're all wrung out now. The strong hands are Russia, China, and actually the people around the world -- they lined up to buy physical beginning on April 16. So, we're back up 10%, so I think the technicals have been wrung out, the fundamental story is intact, and the trend is higher from here. ... Gold does very well in inflation and very well in deflation, which is a surprise to a lot of people. The 1930s were the greatest sustained period of deflation in United States history. Gold went up 65%. The problem is when central banks fear deflation more than anything, they try everything to defeat it, so currency wars, money printing, zero-interest-rate policy, forward guidance, a Twist -- they do everything they can. When they can't win the battle against deflation, they devalue the currency against gold because gold's the only thing that can't fight back. So if the Fed wins, we'll get inflation and gold will go up. If deflation prevails, they'll just say, they'll wake up one day and say, 'Gold's $4,000 an ounce. We're a buyer at $3,995, a seller at $4,050, and we're just going to make a market.' ... It's actually going to go sideways for most of the rest of this year; I think it will go up toward the end of this year. There are some seasonal factors. Inflation's coming with a lag. It's really been a long haul for the Fed. They got their bubbles -- they got their stock bubble and the housing bubble. They don't have (monetary) velocity going yet. They're just going to print more until they do."

More information can be found online at http://www.goldbullionadvisors.com