Yesterday, we sent out a message speaking about the opportunity
that presently lies in silver.
Gold is also a good opportunity in both inflationary and
deflationary times. Even the commercial banks are forecasting a
good year for gold, with UBS predicting $2,050, Barclays $2,000 and
Morgan Stanley, $2,200 prices.
Gold has been on a mini-bear run for the last few months, and this
has shaken out all the weak hands, causing gold to presently be
oversold. Barring a huge deflationary event from the likes of
Europe that could temporarily send gold down further as investors
scramble for liquidity in the 'safe-haven' American dollar, gold
should be going up. And certainly mid-term, gold is expected to be
going higher, and its long term end is not questioned except by the
pundits who have been getting it wrong for a whole decade now,
making erroneous bubble calls throughout the bull cycle. Yet
amazingly, gold is still incredibly undervalued and underowned. How
many people do you know who are buying physical bullion?
Unfortunately, most people do not understand the dynamics of a
secular (long-term) bull cycle; it does not move up in a straight
line. Instead of seeing the present market correction as being a
great buying opportunity, people listen to the bubble callers and
think that the run is over when it is only now getting going.
Indeed, the recent market correction needs to be correctly
contextualized, and we feel that Jeff Clark of Casey Research has
done an excellent job of doing this in the following article:
http://clicks.aweber.com/y/ct/?l=808RF&m=ItB2Jz_jLNk8PH&b=8khVkYlf9f1Wp3wr.0n4QA
What we suggest is that if you do not have your core position in
precious metals, that you take advantage of this great buying time
to acquire one. If you are only able to purchase a minimum amount
of metals, you might want to keep it on hand, as it is always a
good idea to keep something with you for a worst case scenario. For
this type of purchasing, government minted coins are usually the
most ideal and liquid way to go.
However, if you have any substantial amount of wealth, we recommend
that you vault it in gold and silver bullion with a secure vaulting
solution that is separate from the banking and financial sector.
This should be done with a company that can ensure that you will
always be able to access your metals, even in the extreme case that
something were to happen to them. You can find a fair selection of
companies and geographical locations to choose from.
What we can say with certainty though, is: If you haven't already
prepared for what's coming, what are you waiting for?
Global Investments Asset Management
-------------------------------------------------
Global Investments
G.I. METALS DMCC.
2nd Floor
Al Mas Tower
Dubai Multi Commodities Centre
Jumeirah Lake Towers
Dubai, UAE
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