Are you bullish?
“On a medium-to-long-term basis we (Citi) remain very bullish on Gold, As can be seen from the chart, gold has never stayed below that “stairway to hell” for very long. Given that the debt limit number is going to continue higher, a re-emergence of Gold strength looks inevitable. A lot of ‘considered opinion’ suggests that by the end of the present electoral term (the end of 2016 when new presidential elections take place), that the US debt limit will be around $22 trillion USD.”
“A low (in gold) was hit in October 2008 at $682 after falling from $1,011 (32% decline). Within 3 years, Gold had rallied to $1,921 (182% rise). A similar fall and rally would see Gold near-term at $1260 (34% decline from $1,921) and then above $3,500 (178% rise) by 2016.” – Tom Fitzpatrick, Citibank
All Things Considered – John’s Commentary:
A bold statement from Citibank. The math is sound from a technical standpoint and is supported by global economic, monetary and fiscal policies.
Action to take: DO NOT try to pick a bottom. Continue your purchases on a systematic basis in modest amounts. Definitely consider swapping (exchanging) some of your gold for silver to take advantage of the relative weakness of silver. Silver is definitely on sale!
Quote of the day: “The first requisite of a sound monetary system is that it put the least possible power over the quantity or quality of money in the hands of the politicians.” – Henry Hazlitt
