Aden Sisters: Investors Running to Gold; Silver Set to Explode

Release Date: 
Thursday, July 10, 2014

Gold and Silver Prices

Gold prices moved higher as of Thursday after the release of the Federal Open Market Committee meeting minutes, and on escalating tensions in the Middle East. “Gold prices jumped sharply on Thursday for a second straight day of gains…as the reality of the Federal Reserve’s end to its bond-buying program began to gel with investors…Jim Wyckoff of Kitco says traders have also turned their attention overseas. ‘Gold may be seeing some safe-haven demand due to the latest military action by Israel,’ he said. ‘This situation is a potential powder-keg that could further incite unrest in other parts of the Middle East.’” (“Gold soars as stocks fret over Fed minutes,” Market Watch, 7/10/14.)

Gold finished as of Thursday up $15.70, closing at $1,336.30. Silver prices closed up $0.29, at $21.52.

Aden Sisters: Investors Running to Gold; Silver Set to Explode

Noted analysts and newsletter writers Mary Anne and Pamela Aden explained to subscribers how gold and silver could begin to rise.

“Tensions in the Middle East and Ukraine pushed gold up. The Fed then fueled the rise by again affirming a low interest rate policy, while the dollar declined. A run to gold as a safe haven is indeed underway…Gold is looking better with each passing month. Investors are starting to take note…We’ve felt that 2014 could end up being the turnaround year, from a bear market to a bull market. And that a bull market ascent could develop in 2015. This is still a likely scenario.”

“Gold rises when the global economy is slow or weakening because it implies that further stimulus is necessary to turn it around. And this means inflation down stream. Geo-political tensions are also growing in the world today, which will continue causing investors to turn to gold as a haven…”

“Silver is in a great position to explode upward, and we want you to be onboard…Keep an eye on...$20.90, the 65 week moving average. If silver can now stay above this level, the super low area will be behind us. Silver could then easily rise to the $24 level during the current rise. But once it surpasses this level, it’ll be in full breakout mode. Silver would then be clearly bullish. (“The Aden Forecast—July 2014,” Aden Forecast, 7/9/14.)

Hedge Funds Bullish on Gold Again

Bloomberg reports that money managers and hedge funds are bullish on gold again.

“Gold is precious again…Money managers increased net-long positions for a fourth straight week through July 1 and holdings in exchange-traded products are climbing at the fastest pace since 2012…While the latest government data point to an improved U.S. economy…inflation concerns and pockets of unrest are sending investors into gold as a haven. Prices extended gains after the Federal Reserve signaled earlier this month that it will keep interest rates near record lows and violence spread in Iraq and Ukraine. The bulls are being rewarded. The value of the gold funds rose by $5 billion this year as prices rallied 10 percent.” (“Gold Shines Again as Hedge Funds Boost Wagers on Advance,” Bloomberg, 7/8/14.)

Leeb: Investors Have “Got to Own Gold”

Financial author, wealth manager and newsletter publisher Dr. Stephen Leeb discussed China’s insatiable appetite for gold and its message to individual investors.

“Despite the propaganda, the Chinese are accumulating gold as fast as they can, and they are making it more difficult for the West to see how they are doing it and how much gold they are accumulating. It used to be that gold just came in through Hong Kong and we got a report. Now gold is coming in through Shanghai, and Russia. Who knows how many other ways the Chinese are accumulating gold? It’s impossible to keep track of how much gold the Chinese are accumulating. Obviously the Chinese are very serious about building up their gold reserves as fast as they can.”

“So day by day, story by story, you are seeing this point of inflection coming closer and closer. The message for your readers is they have got to own gold.” (“China Is Going To Push Gold, Silver & Oil Dramatically Higher,” King World News, 7/8/14.)

FOMC Minutes Indicate October End to QE

The Federal Reserve’s Federal Open Market Committee minutes for June disclosed agreement to end the Fed’s controversial quantitative easing program.

“Federal Reserve officials agreed at their June policy meeting to end the central bank's bond-buying program by October, closing a chapter on a controversial experiment in central-banking annals with results still the subject of immense debate…‘If the economy progresses about as the [Fed] expects, warranting reductions in the pace of purchases at each upcoming meeting, this final reduction would occur following the October meeting,’ the Fed said in minutes released Wednesday from its June policy meeting…The Fed first started bond buying during the heat of the financial crisis in early 2009. It expanded its efforts in September 2012. Since the last expansion, its total holdings of bonds, loans and other assets have grown from $2.8 trillion to $4.4 trillion.” (“Fed Sets October End for Bond Buying,” Wall Street Journal, 7/9/14.)

Portuguese Bank Shares Tumble

“Worries over the financial health of a major Portuguese lender spooked global markets on Thursday, drubbing shares in southern Europe and sending U.S. stocks tumbling at the open. Investors bought assets traditionally seen as havens such as gold futures as well as U.S. and German government bonds, while some European companies pulled stock and bond offerings. Shares in Banco Espírito Santo, the Portuguese lender, have been under pressure since accounting irregularities emerged in its holding companies in late May. But the declines mounted drastically Thursday after investors learned that parent company Espírito Santo International had delayed coupon payments relating to some short-term debt securities.” (“Markets Tumble on Portuguese Bank Woes,” Wall Street Journal, 7/10/14.)

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†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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