Will the fundamentals ultimately push gold above the all time high or could it stay suppressed? Watch the video below to gain a good perspective into whether or not the prices will rally or crash. Predictions by Jim Rogers, Eric Sprott, Nouriel Roubini, James Rickards, Marc Faber and more. Watching the entire playlist below which includes 10 videos all with different perspectives about the future of gold and silver prices.
Gold bullion prices started their run-up way back in 2000, when the commodity was trading around $300.00 an ounce. From there, it took the precious metal 12 years to break above $1,900 an ounce—an unprecedented move. When an investment, such as gold bullion, rises 500%, a major pullback is expected which is exactly what happened since gold is currently down 40% from its all-time high.
The bullish fundamentals for precious metals haven’t really changed since the correction. Demand for gold bullion is strong, while supply is actually dwindling as gold miners cut back on production, adjusting for lower gold bullion prices.
Central banks, which I believe will be the major force behind the rise in gold bullion prices going forward, are still buying as the decline in gold prices has not scared them away. My position is that central banks need gold to protect their reserves. According to the International Monetary Fund (IMF), this past June, the central bank of Russia increased its gold bullion holdings for the ninth straight month. (Source: Reuters, July 26, 2013.)
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