Leeb: Gold and Silver Prices Will Move Higher Than Imagined

Release Date: 
Friday, December 12, 2014

Gold and Silver Prices

Gold prices and silver prices moved higher this week on weak global economic news. “Gold prices showed little change Friday, staying on track for a solid weekly gain of nearly 3%. The yellow metal has climbed this week, boosted in part by haven demand as investors have reacted to weaker-than-expected economic reports from Japan and China, worries about elections in Greece and a slump by equities worldwide…Gold has been exhibiting ‘normal backing and filling following a breakout that took it up toward $1,240,’ and its ‘broader uptrend remains intact,’ said Colin Cieszynski, chief market strategist at CMC Markets, in a note Friday.” (“Gold on pace for weekly gain of almost 3%,” MarketWatch, 12/112/14.)

Gold finished the week up $30.20, closing at $1,222.80. Silver prices closed the week at $17.14, up $0.85.

Leeb: Gold and Silver Prices Will Move Higher than Imagined

Economist and financial author Dr. Stephen Leeb sees gold and silver prices moving much higher.

“Recently silver has been trading stronger than gold and commodities across the board were pretty firm yesterday. But the interesting thing about silver is that it not only has the industrial uses, but it’s also a safe haven purchase for many investors and you can see that in the U.S. Mint purchases of silver eagles.”

“The other bullish development for gold and silver is the fact that there will not be enough commodities available when the world does reflate. When that happens gold is going to soar. There has been massive accumulation of gold all throughout the East, including Russia. This is all part of the accelerating shift of power from West to East. So anyone with a longer-term perspective should own both gold and silver because they are headed much higher than anyone can possibly imagine.” (“Oil & Stocks Plunge, So What’s Next For Gold, Silver & Oil?” King World News, 12/10/14.)

Rob McEwen: Gold May Hit $5,000

At a panel discussion in Scotland, Rob McEwen, McEwen Mining's controlling shareholder and Chairman, told attendees he sees an “explosive environment: for gold.

“McEwen noted that most major gold mining CEOs (many of them recently installed) had marching orders to [rein] in costs. That would drive down mining output…‘That's why I think you could have an explosive environment,’ said McEwen. When discussing future gold prices, McEwan projected ‘two grand,’ he said, meaning the gold price by the end of 2015. Ultimately gold would peak at $5,000/oz, he said.” (“Gold forecasts for 2015 - Scotiabank mining panel,” Mineweb, 12/11/14.)

World Gold Council’s Grubb: Gold May Return to Record Highs

Marcus Grub, Managing Director of the World Gold Council explained why he sees much higher gold prices during a recent panel discussion.

Grubb “noted that in analyzing the past 12 downturns in the gold price since 1970 - that is where the price drops more than 20% - the WGC found that within 35 months of the price trough gold rebounded 38% to 40%. ‘We may be in the trough now,’ he said. ‘Basically you could see $1,500 gold within that time frame.’ Looking beyond, gold's average rise over 50-60 months from a trough was 90%, Grubb said. ‘Well that would put you at $2,000.’” (“Gold forecasts for 2015 - Scotiabank mining panel,” Mineweb, 12/11/14.)

Aden Sisters: World Engaged in Economic and Currency Wars

Noted analysts and publishers of the Aden Forecast, Mary Anne and Pamela Aden, discussed their views on currency wars, global tensions and gold and silver in their latest newsletter.

“The U.S. economy is doing well, but the rest of the world isn’t. In fact, most people don’t realize that an economic war is taking place and it’s gaining momentum. It’s happening on the world stage and it’s being fought on several fronts…Meanwhile, a currency war is also going on, which is adding fuel to the economic war. The bottom line is, no one wants a strong currency. Instead, they want a weak currency because it will make their exports cheap. The hope is that this will attract buyers for their products, which will help boost their economies. But it’s also flooding the world with low priced goods, again fueling deflation.”

“It’s incredible to see so much unrest in the world today. Every day the news is filled with some intense situation. From the Ukraine/Russia crisis, to Russia being upset with the squeeze from sanctions and the lower oil price. Then there’s Iran joining in on the fight against ISIS. Tensions are also heating up in Israel and Hong Kong. There’s been terrible killings in Mexico and Kenya, and so on.…Clearly, the world is uncertain, and there seems to be wide growing unrest. At some point, this and all the ongoing imbalances in the world will affect the gold price. It’s just a matter of time.”

“[L]ong term investors should slowly accumulate physical gold…Overall, silver is in a generally good buying area for the big picture, and while it could stay depressed a while longer, let’s keep an eye on the key numbers.” (“The Aden Forecast—December 2014,” Aden Forecast, 12/10/14.)

Stockman: Global Monetary System “Will be Destroyed”

President Reagan’s budget chief, David Stockman, warned the United States’ current debt crisis is a ticking time bomb.

“David Stockman, White House budget chief under President Reagan, notes it took the United States 205 years to reach $1 trillion in debt, but only 33 more years to get to the current $18 trillion debt mountain. And he says things are about to get worse. Stockman estimated today's federal debt amounts to 106 percent of GDP, and when state and local debt is factored in, total government debt is 120 percent of GDP – a load that would put many Americans in a homeless shelter if they owed it money on an individual basis.”

“In Stockman's view, the massive monetization of the public debt cannot go on much longer or the global monetary system will be destroyed. He believes the rosy scenario currently projected by the Congressional Budget Office (CBO) for 4 percent GDP growth in coming years is ridiculously optimistic and ‘does not have a snowball's chance of materializing over the next decade. Rather than $8 trillion of cumulative baseline deficits over the next 10 years as projected by CBO, the current policy stalemate in Washington — that has been running for 30 years now — will generate at least $15 trillion of new public debt in the decade ahead.’ When that new debt is added to the current $18 trillion hole the nation has dug itself, the mountain of public debt will hit $33 trillion in 10 years, he wrote.” (“David Stockman: Towering Federal Debt Is Hidden in a ‘Roach Motel’,” Newsmax, 12/9/14.)

A December You’ll Remember—Call Now for Special Year-End Offers

While you search for the perfect gift for everyone on your list, Goldline is keeping you in mind with our year-end specials. This December, when you open a self-directed IRA with Goldline’s Express IRA® program, Goldline will cover your IRA fees for the first two years with free additional limited production bullion coins.* And, with every qualifying purchase of $10,000 or more of limited production, exclusive bullion coins, you will receive a $200 gift card to a popular national retailer.

In a season of giving, we strive to give a little more.

Call 866-867-4466 to learn more about Goldline’s December specials.

Limits and conditions:

  • Limited time offer – qualifying purchases must be confirmed no later than December 31, 2014 at 6pm PST.
  • This offer is not available to current or former Goldline employees. This offer may not be combined with Goldline’s Price Guarantee Programs or Price Shield℠.


*Coins are valued at their ask price

*Federal IRA tax laws are complex and may change from year to year. Goldline believes it is appropriate to have 5%-20% of retirement portfolio allocated to precious metals. Other individuals and institutions may recommend different percentages. As with any investment, you should consult your tax advisor before making a decision regarding precious metals IRA investments.

Goldline provides a wrap-up of the week's precious metals news along with important commentary on the American Advisor Week in Review audio program. Listen to the show below:

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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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