Results 1 to 8 of 8

Thread: 2017 could prove to be gold's 'magic' year

  1. #1

    Default 2017 could prove to be gold's 'magic' year

    2017 could prove to be gold's 'magic' year
    By Matt Clinch

    Gold might have lost 40 percent of its price over the last four years, capping a stellar 10-year bull run, but analysts are already predicting a possible bottom for the precious metal.

    Hovering around a five-year low on Thursday at $1,102 an ounce, gold has been hit by low inflation, a stronger dollar and fears over Chinese demand. The precious metal has recently seen its longest losing streak in nearly two decades and a rout on Monday led to its deepest losses in nearly two years.

    Many analysts like Sandy Jadeja, chief market strategist at Signal Pro, see more short-term bad news for bullion. But, he told CNBC this week that 2017 would be where he starts "stepping in" to add more to his portfolio.

    "My view is that the equity markets will have really exhausted themselves (in 2017)," he said.

    "I would expect the equity markets to come off (in 2017), people coming back (to gold) from a sentiment point of view, thinking maybe gold prices are so low right now maybe it's time to go back in and hedge on equities."

    Jadeja said that $945 an ounce would prove to be a "very key target" in the next two years before the predicted buying.

    Meanwhile, Lynnden Branigan, technical strategist at Barclays, told CNBC that $1,033 and $1,043 are his next downside targets but added that the psychological $1,000 figure would be the "magic number."

    Often seen as a hedge against inflation, gold traditionally has had an inverse relationship to interest rates. Monetary stimulus of this kind can stoke inflation, according to many experts, and thus the demand for the precious metal usually increases when rates are low.

    However, global inflation has been lifeless in recent months and the gold price has suffered. But, this could be about to change.

    Christopher Swann, a cross asset strategist at UBS Wealth Management, believes that inflation will outpace only moderate rate rises by the U.S. Federal Reserve next year. He believes that things will get better for gold after some initial weakness in the shorter term.

    "We would anticipate that the low price of gold at the moment is going to draw in more buyers from India and China." he said in a client note on Thursday.

    He also noted the cost of extracting bullion is reached when it falls to between $1,000 and $1,100 per ounce. Hence, miners would cut back on production and provide an extra floor for the price.

    "We would expect the gold price to stabilize in 12 months," he said.

    Away from the big money flows on exchange-traded funds, there seems to be a slight change in sentiment by private investors.

    BullionVault, a U.K.-based online gold exchange, has noted a rise in demand. Tuesday ranked as one of the highest for new account openings so far this year, Adrian Ash, head of research at the company, said in an email.

    BullionVault also saw its heaviest trading volume since October 2014 on Monday and Google has seen a spike in the search term "buy gold".
    ...
    Video at link: http://finance.yahoo.com/news/2017-c...114405783.html
    Twitter: B4Liberty@USAB4L
    "Foreign aid is taking money from the poor people of a rich country, and giving it to the rich people of a poor country." - Ron Paul
    "Beware the Military-Industrial-Financial-Corporate-Media-Government Complex." - B4L update of General Dwight D. Eisenhower
    "Debt is the drug, Wall St. Banksters are the dealers, and politicians are the addicts." - B4L
    "Totally free immigration? I've never taken that position. I believe in national sovereignty." - Ron Paul


    The views and opinions expressed here are solely my own, and do not represent this forum or any other entities or persons.



  2. Remove this section of ads by registering.
  3. #2

    Default

    Speaking of which, does anyone have any good suggestions for buying gold?

    Last week I placed an order with http://www.goldmart.com/, but I hear that they're kinda slow, and they also charge extra if you don't feel like mailing in a check.
    If you wanted some sort of Ideological purity, you'll get none of that from me.

  4. #3

    Default

    Quote Originally Posted by Sam I am View Post
    Speaking of which, does anyone have any good suggestions for buying gold?

    Last week I placed an order with http://www.goldmart.com/, but I hear that they're kinda slow, and they also charge extra if you don't feel like mailing in a check.
    These online vendors have been around for a while:

    http://www.jmbullion.com/
    http://www.apmex.com/
    http://www.providentmetals.com/
    Twitter: B4Liberty@USAB4L
    "Foreign aid is taking money from the poor people of a rich country, and giving it to the rich people of a poor country." - Ron Paul
    "Beware the Military-Industrial-Financial-Corporate-Media-Government Complex." - B4L update of General Dwight D. Eisenhower
    "Debt is the drug, Wall St. Banksters are the dealers, and politicians are the addicts." - B4L
    "Totally free immigration? I've never taken that position. I believe in national sovereignty." - Ron Paul


    The views and opinions expressed here are solely my own, and do not represent this forum or any other entities or persons.

  5. #4

    Default

    Quote Originally Posted by Sam I am View Post
    Speaking of which, does anyone have any good suggestions for buying gold?

    Last week I placed an order with http://www.goldmart.com/, but I hear that they're kinda slow, and they also charge extra if you don't feel like mailing in a check.
    apmex.com is excellent. Great customer service.

  6. #5

    Default

    Many analysts like Sandy Jadeja, chief market strategist at Signal Pro, see more short-term bad news for bullion. But, he told CNBC this week that 2017 would be where he starts "stepping in" to add more to his portfolio.
    SO he expects gold to continue to fall for at least the next two years.

    Jadeja said that $945 an ounce would prove to be a "very key target" in the next two years before the predicted buying.
    Unusual number. Why $945? Why not $950?
    Last edited by Zippyjuan; 07-23-2015 at 11:09 AM.
    "The future is here, it's just not evenly distributed yet." - William Gibson

    I am Zippy and I approve of this post. But you don't have to. This post may include statements I don't personally agree with.

  7. #6

    Default

    Quote Originally Posted by Zippyjuan View Post
    SO he expects gold to continue to fall for at least the next two years.

    Unusual number. Why $945? Why not $950?
    As our resident government PR representative and statics.gov distributor, when do you think gold will hit bottom? If the job market does improve, will there be inflation? Will gold go up then?
    Twitter: B4Liberty@USAB4L
    "Foreign aid is taking money from the poor people of a rich country, and giving it to the rich people of a poor country." - Ron Paul
    "Beware the Military-Industrial-Financial-Corporate-Media-Government Complex." - B4L update of General Dwight D. Eisenhower
    "Debt is the drug, Wall St. Banksters are the dealers, and politicians are the addicts." - B4L
    "Totally free immigration? I've never taken that position. I believe in national sovereignty." - Ron Paul


    The views and opinions expressed here are solely my own, and do not represent this forum or any other entities or persons.

  8. #7

    Default

    I can't predict the future (nobody can) but the last gold bubble deflated for 20 years. (no two bubbles or crisies are the same of course). Since gold pays no interest, higher rates could mean lower gold prices as investors seek higher rates of return. Gold is what they buy when everything else is falling.

    It is true that gold price can follow the rate of inflation- the bubble in 1980 followed a rising rate of inflation. That bubble burst when the Fed cranked up interest rates (some as high as 20%) to try to bring down that rate of inflation. As the inflation rate fell, so did the price of gold. Price inflation is still very low. However, that trend did not continue once the crash hit. Inflation continued to fall yet gold rose. At that time, the economic situation was the bigger factor. As the economy started to improve, gold peaked and started back down.

    http://www.wsj.com/articles/spot-gol...ade-1437444607

    Investors have been selling gold on anticipation that the Federal Reserve will soon raise interest rates for the first time in nearly a decade. Fed Chairwoman Janet Yellen last week reiterated the central bank’s plans to raise rates this year, prompting many investors to adjust their expectations for the path of U.S. monetary policy and its impact on gold prices. The precious metal doesn’t pay interest or dividends and would struggle to compete with bonds and stocks that do when rates climb.

    “No matter how minimal the rate increase is, the perceived threat of the increase has completely reversed the sentiment for gold,” said Bob Haberkorn, a senior commodities broker with RJO Futures in Chicago.

    For many investors, the outlook for gold remains downbeat.
    http://www.wsj.com/articles/spot-gol...ade-1437444607

    A lot will depend on the global economy. A new economic crisis could cause gold to rise again.


    http://www.kitco.com/charts/livegold.html
    Last edited by Zippyjuan; 07-23-2015 at 12:02 PM.
    "The future is here, it's just not evenly distributed yet." - William Gibson

    I am Zippy and I approve of this post. But you don't have to. This post may include statements I don't personally agree with.

  9. #8

    Default

    Quote Originally Posted by Zippyjuan View Post
    Unusual number. Why $945? Why not $950?
    inside intel yo!






Similar Threads

  1. 2016 is the year for Gold! Is now the time to lock in a Gold IRA?
    By Peter4Paul2016 in forum Economy & Markets
    Replies: 14
    Last Post: 02-12-2016, 01:15 PM
  2. Replies: 13
    Last Post: 05-25-2015, 07:58 PM
  3. Replies: 1
    Last Post: 10-17-2012, 03:29 PM
  4. Replies: 0
    Last Post: 12-22-2011, 08:56 PM
  5. PMs: Gold — $2,000/oz. by Year’s End?
    By bobbyw24 in forum Economy & Markets
    Replies: 5
    Last Post: 03-09-2009, 02:03 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •