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Gold is up to $1,330 Today (so far)

17 Feb

Gold Rising [courtesy Google Images]

Gold Rising?
[courtesy Google Images]

Gold is up about $85 in the previous 30 days or an average of about $4 per trading day.

There are about 220 trading days left in this year.  If gold continued to rise at an average of $4/day, the price of gold could be up another $880 for a year-end price of $2,210—that’s an increase of 66% in the next 10.5 months.  Over 6% per month.

Most conventional paper-debt investment vehicles (stocks, bonds, bank accounts, pension funds, etc.) will be happy to generate a 5% increase per year.  I don’t know what gold will actually do in the remainder of the year, but gold has a shot at an average increase of 5% per month.

Naked short selling has been a primary strategy for suppressing the prices of gold and silver. A friend of mine who should know what he’s talking about told me that the Federal Reserve has announced that naked of short selling of gold will be prohibited after May 1st.  I haven’t confirmed his report, but if it’s true, the ability of government and/or Wall Street banks to suppress the price of gold will soon be badly diminished or even terminated.

My friend believes that the coming suspension of naked short selling is the underlying cause for the current jump in gold prices.   I’m not making a prediction but, if my friend’s report and conjecture are accurate, it’s conceivable that the price of gold could double by the end of this year.

 
4 Comments

Posted by on February 17, 2014 in Gold & Silver Coin, Savings

 

Tags: , ,

4 responses to “Gold is up to $1,330 Today (so far)

  1. thomas russo

    February 17, 2014 at 3:53 PM

    congress can only set the value of Gold or Silver or what ever they call money, the markets so to speak deals only in commerce.

     
  2. Peter

    February 19, 2014 at 11:29 AM

    Short covering will add to the underlying buying currently underway in this new uptrend. I suspect the buying never stopped during the last 2 years, witness China’s buying, the prices actually rose for the last 2 years in actual diminished supply. Although in a visible downtrend (correction) for the last 2 years, going forward the percentage gains overall may actually negate any existence of their ever having been a corrective phase??

     
  3. marketonmobile

    February 21, 2014 at 5:39 AM

    The gold market is exposed to speculation similar to all other markets, particularly, during the exploit of futures contracts as well as derivatives. The shinny yellow-metal has witnessed trades of around 2,745 contracts, and the open interest has risen by 619-odd lots so far on the MCX.

     
  4. kanani

    February 21, 2014 at 7:30 AM

    Keep stackin’.

     

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