CR GREATEST HITS©
After the middle of this month, August, you will see all the markets get a little nervous. Investors seem to be moody and emotional, which leads to nervousness. All markets, including the commodities and currencies markets, will get a little spooky going into September. We see the Euro continuing to drop against the USD for the coming weeks. It will drop to 122 and stop before it falls under 120 again. We predict the USD will get stronger against most other currencies, putting downward pressure on the Euro especially. Silver will continue to alternate…going up one week and down the next. For the longer term, it will continue its uptrend and possibly reach $24 an ounce by the end of the year. We predict gold will also rise as investors are really confused over what to invest in. Gold, even if they don’t know much about it, seems to be safe until they can decide.
Plus, the ETF’s are loading up on metals, expecting a rush, especially on gold. (NEWS proof) Gold will rise more quickly after September 1, 2010. Watch for gold prices to break through $1230 and go up to $1340 by the end of the year. Then, with the economy still reeling, (NEWS proof) hitting $1500 in Q2 of 2011. Demand for gold jewelry will continue falling as prices go up, forcing big holiday discounts on gold jewelry. As prices on gold rises, gold and silver together in jewelry will become popular. The weather will continue affecting commodities. Wildfires, floods, and excessive heat around the world will hurt the grain crops. In Russia especially, they will see much of their crops destroyed due to the wildfires. Russia’s grain export ban will help to keep prices high on the remaining crops. The continued dryness and flooding with higher heat will put pressure on all kinds of crops and affect food prices around the world. You will hear people on TV talking about “food inflation.” An early freeze this winter will devastate citrus crops. This devastation of crops will cause food prices to go up around the world and continued nervousness and slow-to-no-growth in the economy will cause metals to stay strong.
QUESTION: So, people will flock into metals…gold and silver…because they are easy to understand?
ANSWER: They seem safe because you can see, feel and touch gold or silver. It’s unlike buying stocks where you don’t acquire a physical thing you touch. Also, people want to hang onto gold or silver much longer than a stock.
QUESTION: Are gold and silver just a temporary investment solution to a serious change in our exchange systems?
ANSWER: It’s more of a response to uncertainty and nervousness. Which stock do you pick? Which sector do you short? You can buy gold and hang on for a long time as it always eventually goes up. Gold could be seen as an interim alternative if deflation continues and your money becomes worth less. Having metals that go up in price is a good hedge when you are unsure of what to do.
QUESTION: Recap the most important points in your message today?
ANSWER: You will see a silver shortage and long backlogs before the end of this year.
QUESTION: Will there be any government regulations that are imposed that attempt to interrupt the personal ownership of physically possessing precious metals?
ANSWER: Our message is that as people lose confidence in the stock market, they will move into metals.
QUESTION: Why is this information timely?
ANSWER: This information is timely because many people don’t know what to invest in and even if they have never bought gold in the past they will do so now.
QUESTION: Tell our readership the best way to apply this information to their life right now?
ANSWER: Watch out for all types of declining assets when you are investing in the markets. Even if you take a position in gold or silver, protect your position with protective puts.
COMMENTARY: Declining assets are everywhere. Real estate is not done going down, stocks are over-priced, your luxury car is depreciating every day, your 401-k has been mismanaged, and its affecting other assets like…your health and well-being. Gold is looking mighty good to individuals, funds, and governments. Gold is something people are driven to by fear. It has been hoarded by people throughout time and present the times are no different. Be careful not to put too much of your portfolio in a fear metal.