Tom Cloud is the Vice President of National Numismatic Associates, Inc. The National Numismatic Associates, Inc is a Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers company located in Duluth, Georgia. In this post, I would like to share the key points from the interview he gave to 24hGold with regards to outlook on gold price.
Note : I would like to stress that Tom's opinions are rather one sided on promoting the sales of precious metals. However readers should read the key points from Tom and treat them as reference only.
Key points from the interview:
- I'm not sure that the bottom is in (for gold price), but it certainly will be between now and the 27th (March 2013) when the government raises the debt ceiling. In the meantime there's the possibility of gold going lower, maybe breaking down to $1,540.
- The fundamentals of gold price to go much higher is there. The event of the raising of the debt ceiling at the end of the March 2013 will likely spark a rise in gold price. History has shown that when the debt ceiling goes up gold and silver go with it.
- The debt ceiling is about the government's ability to borrow money. As long as they can borrow as much as they want and print as much dollars it takes to cover the borrowing debt, there will be no control over spending The chances of raising the debt ceiling is very likely as the other alternative options are to close the government down or cut entitlements (both alternatives are politically impossible).
- China has increased its gold purchases for 13 straight months.
- The dollar has definitely been in a bull market the past few weeks. However the bull run will not last due to the amount of uncontrolled money being printed. This certainly points to an impending double digit inflation in the the long run.
- Mining costs are as high as they've ever been. One mining companiy recently stated that they need the gold price to go higher in order to operate a new mine. In away, that means lesser gold production and higher gold prices!
From the above, it seems that all the indicators that affect gold price are pointing to a rise in gold price. As the saying goes, we are all experiencing a calm right before the storm. When will the storm occur? Let's wait and see.
Cheers and Happy Investing!
P.s:
1) Got an opinion to share about Gold Price? Join our forum for further discussion.
2) Don't forget to "LIKE" our Facebook Page as well!
No comments:
Post a Comment