I have had the opportunity this weekend to take a closer look at the Gold ETF symbol (GLD). GLD is currently trading at $119 and approaching its all time high of $122, I believe that this summer will see Gold truly soar as the next phase of the financial crisis comes home to roost.
It's laughable when watching Bloomberg or CNBC after a stock market sell off
that occurs at the same time as a fall in the price of Gold. The anchor will say Gold sold off because of a "flight to quality"..."the quality" apparently being US treasuries. Hah!. So an asset with intrinsic value, a store of wealth for generations is less quality than the debt of a government with its head asleep on the printing press ! Do we really think that a government can flood its economy with a trillion dollars of paper and suffer no ill effects ?
This is nonsense. Take my word for it this sovereign debt crisis is not nearly over with the spread of the contagion to Hungary. Ultimately this is coming home to roost in the US. When that happens, as it will expect complete financial market meltdown and for Gold to soar.
My cycles suggest that GLD is going to have an incredible summer I expect it to trade at $145 before it has any meaningful sell off. That’s an 18 per cent appreciation on its current price.
Gold , Silver and other precious metals are the only assets capable of surviving the coming financial storm. The time for that storm is now. Expect the crisis to escalate over the coming weeks.