What have analysts been saying about gold and silver?


You’ve probably heard that gold and silver have hit lows recently, but what do analysts have to say about this? Below is a recap of three recent articles containing valuable insight.

Gold: Time to Prepare for Big Gains?

At the recently held Casey Research Fall Summit, positive outlooks on gold were abound among attendees. David Tice, founder of the Prudent Bear Fund, believes we may see a “global currency reset” that will lessen the role of the U.S. dollar in international trade. He also sees a possible crisis in the paper gold market (gold ETFs) happening in the future that may boost gold tremendously. Ed Steer, editor of Casey Research’s online newsletteris bullish on gold in the long term based on what he believes to be central bank manipulation. Rick Rule, chairman of Sprott US Holdings, said “What matters is your response to the bear market. If you have the wits, courage, knowledge, and cash to take advantage of them, bear markets are great.” Louis James, chief investment strategist of Casey Research’s Metals & Mining division, agrees with Rule and thinks gold is presenting a welcoming opportunity for those looking to buy it at a low price. See the full article from Casey Research here.

Is It Time for the Gold Bulls to Panic? It All Comes Down to the True State of the U.S. Economy

An asset manager at Hebba Alternative Investments writes in Seeking Alpha that the U.S. economy, which tends to have an inverse relationship with safe-haven assets such as gold, is not improving as strongly as many pundits claim. Here are some of the examples the author gives demonstrate this point:

  • The media called the latest jobs report “strong” despite the fact that over the last six years, the number of working-age civilians in America grew by 14 million while the number of labor force participants grew by only 1 million – which is “not quite the rosy picture that all the jobs hype portrays.”
  • A growing economy tends to see increases in commodities prices (oil, corn, soybeans, wheat, etc.), but instead these prices have fallen significantly.
  • On the surface the stock market may seem as though it is thriving, but stock trading volumes are still low and more money is being concentrated in only a handful of booming stocks.

For more such examples, see the full article. The conclusion reached is that gold “provides investors with that economic catastrophe insurance – you may not know exactly how things will go bad, but if they are then you want to own some gold.”

Silver Prices Tipped for Rebound After Slump Versus Gold

Analysts have not forgotten about silver, and there are still plenty of silver bugs in the markets. Biman Mukherji and Rhiannon Hoyle write in the Wall Street Journal that silver prices may be in for a rebound, thanks much in part to the metal’s many industrial uses. Silver has declined even more sharply than gold this year, and its price compared to gold (the gold-silver ratio) is at a five-year low. This unusual opportunity has caught many eyes and sparked retail silver coin sales in Australia. Silver’s use in mobile phone technology may help demand pick up as the U.S. economy recovers. The authors also note: “Coin investors and collectors tend to be individual buyers, and are usually among the first to jump back into the markets to take advantage of what they see as bargain prices after a slump, analysts say.”

If these opinions have you interested in gold and silver, considering adding them to your retirement portfolio by opening a Gold IRA capable of holding physical precious metals along with paper assets. Start protecting your financial future from economic uncertainty today by calling American Bullion at 1-800-326-9598. One of our dedicated agents will be happy to assist you.