Outlook_ gold and silver investors will look mighty smart in 2017 – the wall street examiner

In the 1970s, for example, the Federal Reserve set rates soaring to levels unthinkable by Janet Yellen’s standards. How to buy gold from india They routinely topped 5% over the course of the decade, hitting 13% during Arthur Burns’ tenure in 1974 and 15.55% in 1979 during Paul Volcker’s day. How to invest in gold futures All this was done in a less-than-totally-successful attempt to shore up the dollar and crush the inflation and high unemployment that vexed the Fed throughout the decade.

And yet, through all of this, gold enjoyed a kind of “Golden Age,” with gold starting the 1980s around 24 times more valuable, per ounce, than it had been in 1970. How to invest in gold bonds And the run continued through the 1980s. Invest in gold etrade That was a bull market of epic proportions – the mother of and benchmark for all secular metals bulls.

Certainly in 2017, I don’t expect a strong dollar to do any harm to the price of gold. Invest in gold is good or bad That said, I don’t think the dollar will stay all that strong for much longer. Why to invest in gold and silver Which brings me to the next catalyst. Invest in gold bullion uk Gold & Silver Catalyst No. Invest in gold market 3: Rising Inflation (and a Weaker Dollar) in the Future

Higher bond yields, the incoming Administration’s spending plans, and a heating-up economy all signal higher inflation. Why is it good to invest in gold Right now, the fed funds rate is 0.5%, while inflation is running at 1.7%. Should i invest in gold That means the the real interest rate is -1.2%. Should i buy gold from a pawn shop And, as we’ve seen, when inflation outpaces interest rates, gold does better, largely because it’s seen as a hedge against inflation and an alternative to the dollar.

Trump has announced his desire to weaken the dollar to boost exports by making U.S. Why should i buy gold and silver goods cheaper. Why invest in gold bullion His proposed trillion-dollar spend on infrastructure, largely paid for by tax cuts and debt, will also put the brakes on the dollar. Can i buy gold bars It should spur economic growth and inflation.

Once inflation reaches a “tipping point” in the mind of the public, who perceive that we’re in an inflationary cycle and run out and pile into gold as a hedge – another self-fulfilling prophecy. Should i buy gold bars or coins I’m anticipating this will be a strong factor in about six months’ time, as we get into the summer of 2017. How to invest in gold bonds india Gold & Silver Catalyst No. Is it good to invest in gold coins 4: Rising Industrial Demand for Metals

Both gold and silver are a good store of value, but they’re also used more and more, in heavier and heavier amounts, by industry, especially high-tech and medical applications, everything from dentistry to computers, GPS receivers, solar panels, batteries, semiconductors, and even nuclear reactors all use silver, gold, or some combination of the two.

There is growth right now virtually across the board in these industries – strong growth – that’s only going to get stronger in the new year. How to invest in gold uk I can’t imagine demand would slacken under these circumstances.

All this bodes very well for gold and silver investors in 2017, so let’s take a look at how high I believe these metals can go in the short term.

For all these reasons, I think we have every reason to believe we’ve seen the bottom of the past six months’ correction, and that gold and silver are likely to turn right around and go on a bit of a tear in the just the first quarter of the year.

The yellow metal is sitting just below $1,190 per ounce right now, with support at $1,172. How to invest in gold online It’s looking actively bullish right now, which serves as further evidence that the bottom is behind us. Invest in gold royalties I think we could see gold hit between $1,250 and $1,280 in the first quarter, and it’s not unreasonable to expect $1,400 farther into 2017.

So gold looks good, but silver looks even better. Invest in gold online india Those “smart money” shorts had decreased some 31% between August and December of last year, a bullish sign.

The current gold/silver ratio is trending down; it sits at just above 71, meaning it takes 71 ounces of silver to equal the value of an ounce of gold. Why should i buy gold This makes silver rather inexpensive relative to gold. Should you invest in gold I’m expecting silver to reach the $19 range in the first quarter of 2017, and $22 in the second. Why should i buy gold now The price may even move to $24 if the Indian demand picture proves as strong in reality as it appears to be.

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