Wall Street has struggled this week, but gold is moving higher.
Today gold is up $12 to $1,238 an ounce, and gold stocks are sharply higher.
I gave a strong sell signal for gold back in December 2011, when gold was approaching $2,000 an ounce. It was a good call. Gold fell 50% in the next five years.
But now I’m recommending gold again (see Forecasts & Strategies at www.markskousen.com for my specific recommendations.)
With the Fed soft on raising rates and increasing the money supply (M2) at an alarming rate of 9%, precious metals may be due for another move up.
I discussed this easy-money policy by the Fed on CNBC on Tuesday with Rick Santelli. Watch the interview.
Please understand that I’m not recommending gold because I have suddenly joined the doomsday camp of Peter Schiff, Jim Davidson, Bill Bonner, Ron Paul, Jim Rickards and a host of other Cassandras who have come out of the woodwork lately to predict another financial Armageddon. I’m recommending gold because the Fed is back pumping fiat money into the banking system. As long as the U.S. central bank doesn’t raise rates any time soon, that money is likely to go into hard assets such as gold and real estate.
If you have an interest in exchange-traded funds focused on gold, my colleague Doug Fabian has written two recent articles that may interest you. One focuses iShares Gold Trust ETF (IAU) and the other features SPDR Gold Shares (GLD).
I encourage you to read them, if you are contemplating an investment in any gold funds in the near future.
Today gold is up $12 to $1,238 an ounce, and gold stocks are sharply higher.
I gave a strong sell signal for gold back in December 2011, when gold was approaching $2,000 an ounce. It was a good call. Gold fell 50% in the next five years.
But now I’m recommending gold again (see Forecasts & Strategies at www.markskousen.com for my specific recommendations.)
With the Fed soft on raising rates and increasing the money supply (M2) at an alarming rate of 9%, precious metals may be due for another move up.
I discussed this easy-money policy by the Fed on CNBC on Tuesday with Rick Santelli. Watch the interview.
Please understand that I’m not recommending gold because I have suddenly joined the doomsday camp of Peter Schiff, Jim Davidson, Bill Bonner, Ron Paul, Jim Rickards and a host of other Cassandras who have come out of the woodwork lately to predict another financial Armageddon. I’m recommending gold because the Fed is back pumping fiat money into the banking system. As long as the U.S. central bank doesn’t raise rates any time soon, that money is likely to go into hard assets such as gold and real estate.
If you have an interest in exchange-traded funds focused on gold, my colleague Doug Fabian has written two recent articles that may interest you. One focuses iShares Gold Trust ETF (IAU) and the other features SPDR Gold Shares (GLD).
I encourage you to read them, if you are contemplating an investment in any gold funds in the near future.
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