Back in December, RME CEO Jim Clark stated the bottom for gold was in. His exact quote at the time was “I am going on record today to say that the price of gold [$1049] has found the bottom. The bull market in gold has begun.”. Today, gold closed right around $1190, up approximately $140 per ounce in just the past 2 months. You can read that original blog post from December here. We are now seeing other industry experts and strategists agree. We believe this is just the beginning. There is a reason for the increase in gold. Read on…
We are in the midst of a market change. Some will take advantage, others will be left behind. For those looking to enter the market, now is the time. For those who already purchased at higher levels, it is most definitely a time to rebalance your portfolio.
As previously mentioned, this past December, a bottom was established in gold at under $1049 per ounce. Since that time, the dollar and stock markets have been falling. This indicates a fundamental change in the direction of markets so far into 2016 and perhaps beyond.
Noted trader, economist, and respected newsletter writer, Dennis Gartman of The Gartman Letter has changed his opinion of gold lately. After seeing a surge in gold to the $1200 per ounce level, a 12% increase so far this year, Gartman is now officially in the bull camp for gold for the first time in a long time. “After seeing a bear market essentially since November of 2011, gold is firmly in an uptrend which should continue”, he told viewers on CNBC Tuesday. “It’s different this time. This has been a demonstrative move to the upside without the benefit of hedge funds and speculators which typically fuel the market. Negative interest rates by the Bank of Japan are also responsible”, he added.
Watch a video from Gartman on CNBC which aired today (Feb 9, 2016):
Fear of the unknown by investors globally has helped gold reach $1,200 an ounce on Monday, explains George Gero, Vice President of RBC Capital Markets. “As crude weakness and political uncertainty persists and banks in the Eurozone experience weakness… gold reached the $1,200 area,” Gero says in a note Monday afternoon. “There are enough compelling reasons for haven seekers to return to gold, especially in view of gold being liquid, portable, convertible to any currency and without political allegiance,” he writes.
Donald Trump, Republican Presidential hopeful made his views of what is taking place quite clear, “Stock Markets are in a Big, Fat, Juicy Bubble”, he explained.
Slowing global growth has been nagging at markets, but then so has the idea that the energy industry’s slump will create casualties among energy companies and the banks that lent to them. European banks are especially vulnerable to this idea, and they have already been suffering the most. Deutsche Bank was down 8 percent Monday. U.S. banks are also feeling the heat.
Let’s take a look at a gold chart over the past 2 months:
Here is another video from CNBC which aired yesterday featuring BoA/Merrill Lynch strategist Michael Widmer. Mr Widmer states that the bottom is in for gold, and how gold will target $125o in 2016:
The need to rebalance your portfolio to gold and silver while prices are still low in comparison to the surge in prices witnessed from 2008 – 2011 has never been more apparent. Precious metals in your portfolio offers not only diversification, but insurance, protection, and peace of mind against a falling dollar, inflation, and government mismanagement. Speak with one of the experienced representatives at Republic Monetary Exchange. Learn and engage with our experts. See how our service to you, our client, is beyond and above what you will find anywhere in the industry.
Contact an expert now at (602) 955-6500 for more info and current pricing.