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The Golden Age
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
zerohedge.com / by Shane Obata & Richardson GMP / 02/04/2016 19:48 -0500
The Golden Age
Some people say that gold is dead. They point to deflationary pressures and a bear market that started back in September of 2011. The bulls have been wrong for years; however, that may be about to change…
At present, there a multiple reasons to consider gold:
- Sentiment is very negative and almost everyone is underweight
- Supply & demand fundamentals are positive
- Chinese demand continues to rise
- Gold is a means to portfolio diversification
- The main risks to prices are overblown
In the next sections, we will examine the bull case for gold and the risks facing it. In conclusion, we will try to answer the following question: Is this the beginning of a new golden age?
Sentiment & Positioning
In the latest Barron’s Big Money Poll, only 3% of respondents thought that gold was the most attractive asset class. Moreover, 71% were bearish on the yellow metal. Volume traded in $GLD (the SPDR Gold Trust ETF) has come down dramatically, which indicates a lack of interest in gold bullion. Volume traded in $GDX (miners) and $GDXJ (junior miners) has been increasing; however, interest in “gold mining stocks” has been falling since mid-2011. This suggests that traders are trying to catch the falling knife, even though investors are not convinced that gold is undervalued.
The post The Golden Age appeared first on Silver For The People.
Thanks to BrotherJohnF
Source: http://silveristhenew.com/2016/02/05/the-golden-age-2/
