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Gold Poised for Upside Breakout of Current Range
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
hindecapital.com / by Simon White / August 7, 2012
Gold has been caught in a very tight range since the 16% rally at the start of the year and the subsequent sharp sell off in late February and March. Often when prices in any asset become compressed, they invariably break out of the range emphatically. With gold, the fundamentals remain supportive which suggests that gold should break out from its range to the upside.
Specifically, global liquidity conditions are very accommodative and global interest rates are being lowered ubiquitously.
Currently, the VP Expected Real Interest Rate is -2.75% which implies a subsequent year-on-year return for gold of over 20%.
Furthermore, gold is strongly underperforming relative to the rule of thumb provided by Gibson’s Paradox.
Thanks to BrotherJohnF
2012-08-07 07:48:20
Source: http://silveristhenew.com/2012/08/07/gold-poised-for-upside-breakout-of-current-range/
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