On the heels of gold and silver moving solidly
higher today, today a man out of Europe who has been extremely accurate
with his calls on the gold market sent King World News two fantastic
charts and powerful commentary which explain why gold is on the move
once again. KWN was given exclusive distribution rights to the
outstanding piece below by Ronald-Peter Stoferle of Incrementum AG out
of Lichtenstein.
It seems that consensus currently assumes that the gold bull market has ended. However, we are of the opinion that the fundamental case to own gold continues to be intact, more than ever. It seems that the correction which has been in train since September 2011 exhibits strong very similarities to the mid-cycle correction of 1974 to 1976. That period is similar to the current one specifically because of marked disinflation, rising real interest rates and extremely high pessimism regarding investment in gold.
We would assume that this
view was released only recently. However, it was written in the New
York Times on 29 August 1976 (!!), only 2 days after gold hit it’s
corrective low.
Read More: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/10/24_Here_Is_The_Surprising_Reason_Gold_Is_Soaring_Again_Today.html
It seems that consensus currently assumes that the gold bull market has ended. However, we are of the opinion that the fundamental case to own gold continues to be intact, more than ever. It seems that the correction which has been in train since September 2011 exhibits strong very similarities to the mid-cycle correction of 1974 to 1976. That period is similar to the current one specifically because of marked disinflation, rising real interest rates and extremely high pessimism regarding investment in gold.
Tom Fitzpatrick recently quoted an article which stated the following:
“Two years ago gold bugs
ran wild as the price of gold rose nearly six times. But since cresting
two years ago it has steadily declined, almost by half, putting the
gold bugs in flight. The most recent advisory from a leading Wall
Street firm suggests that the price will continue to drift downward, and
may ultimately settle 40% below current levels. The rout says a lot
about consumer confidence in the worldwide recovery. The sharply
reduced rates of inflation combined with resurgence of other, more
economically productive investments, such as stocks, real estate, and
bank savings have combined to eliminate gold's allure. Although the
American economy has reduced its rapid rate of recovery, it is still on a
firm expansionary course. The fear that dominated two years ago has
largely vanished, replaced by a recovery that has turned the gold
speculators' dreams into a nightmare.”
Read More: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/10/24_Here_Is_The_Surprising_Reason_Gold_Is_Soaring_Again_Today.html