2014 might well be the year gold and silver puts those bears on the run
© By Margaret Olsen, ASA
The Gold and Silver precious metals have been languishing in a narrow downward range for the past 6 months and then some. This market is very reminiscent of the time when Gold could not break through the $300.00 range. Every time that gold got close to the $300.00 range, there was tremendous, excessive naked short selling by traders, marketeers and mining consortiums in addition to leasing. The forecasters all were bearish on the gold and silver market then, as they are now. One of the hardest lessons for people and investors to learn is to go against the majority. By the time every one believes the same thing, the trend has changed. When ALL the forecasters are telling you how bad the metals markets are, it is time to buy.
We may now be seeing history repeat itself and with all the bears betting against gold, this would be a good time to buy some gold and go against the majority. Of course, this doesn't mean "bet the ranch", as one should never put all your eggs in one basket. Buy what makes you comfortable and lets you sleep at night.
The stock market and the Dollar market are on thin and melting ice. We know that China wants it's yuan to be the world's next reserve currency and already some international commerce is now transacted in Chinese yuan. As if the Chinese yuan isn't enough, now the dollar is competing with Bitcoin, so don't be surprised to see the U.S. Fed attempt to outlaw Bitcoin.
The Gold and Silver markets are now wound very tightly and when they spring, they will move very, very swiftly. This will be a case of it's better to be a year too early than a day too late. Many will miss the move and by the time the analysts let you know that you should buy into the market, it will have left most people in the dust. Remember that China is busy buying up as much gold as it can get. Of course, this doesn't take into account all the gold that is flowing into India. Remember that in many countries, gold is considered the currency of last resort. It has lasted throughout the ages and will far outlive us.
The physical demand for gold and silver around the world is high and the supply is very limited. When everyone wants physical possession of their gold and silver at the same time, the shortfall will be exposed and the frenzy to get physical gold and silver will be in full force.
Gold and silver may go lower before they go higher, but don't be surprised when you see the metals spring up and we experience a price explosion. Position yourself to benefit from a price explosion prior to its existence.
2014 might well be the year gold and silver puts those bears on the run.
WestminsterCoinJewelryandSportsAppraisals.com
President, Westminster Appraisal & Consultation, Ms. Olsen has been an appraiser for more than 35 years. Her American Society of Appraisers designations are Personal Property-Sports Collectibles and Memorabilia and Numismatics (coins and currency). Ms. Olsen is a frequent guest speaker and lecturer. A recognized authority on Personal Property, she is often called upon for expert witness consultation, testimony and appraisal related corporate, estate, charitable contribution and tax consultation She has been seen on PBS, heard on radio stations, quoted in USA Today, The Washington Post, Associated Press, Smart Money, The Chicago Tribune and numerous other publications. She has published articles about the appraisal profession, professional development, sports memorabilia, and co-authored "The Gold Book, A Guide to Commonly Traded Gold Bullion Coins and Bars" and "The Platinum and Palladium Buyer's Guide."
Ms. Olsen has taught Personal Property Principles of Valuation, Connoisseurship and Professional Development Courses at The University of California at Irvine (UCI), Northwestern University (NWU), George Washington University (GWU), The University of Missouri at Kansas City (UMKC), Pratt Institute, The University of Missouri at Columbia (UMC), University of Georgia (UGA), University of Tennessee-Knoxville (UTK), and Rhode Island School of Design (RISD). She is an Education Consultant to Pratt Institute, and a member of the UCI Advisory Committee and is the recipient of the Distinguished Instructor Award from UCI.