Gold Will Jump to $2,000.00 and Beyond Rather Quickly

Well QE is official now, however it’s not officially QE3, but QE to infinity. Bernanke is going to purchase 40 billion dollars of MBS monthly until unemployment is reduced substantially. This coupled with the recent news from the passage of the ESM by the German Constitutional Court gives power to the ECB to print relentlessly in order to bail out the failing governments of the PIIGS countries. Now both sides of the Atlantic together will engage in endless money printing to put the final nails in the coffins for both the dollar and euro.

Upon Bernanke’s news, gold and silver markets along with the stock markets all rallied at higher levels. Gold had a very strong move off its current lows. Many investors had been shaken out of the gold market over the past year. They were scared and felt it was in a bubble that had already topped. Surprise! No way is the gold market near a top. It’s only just starting breakout once again, with a very long way to go before any signs of a market top come into sight.

Sadly those investors who did get out have to get back in at higher prices. Chances are that $1,700.00 gold and $30.00 silver are pretty much a thing of the past. Furthermore were now actually seeing high profile fund managers talking up gold. Believe it or not CNBC that’s mainstream media actually is now taking a positive stand on gold too.

But wait, not everyone is jumping onboard the precious metals express just yet. Many investors still believe the equity markets are where the money lies especially after their recent gains brought upon by Bernanke’s speech which solidified beliefs that the equity markets once again are a safe play. Precious metals as usual, takes a back seat in the eyes of the main stream public and small investors.

It’s very possible we could see over the next few weeks to months prices of mining shares get a sharp revaluation as well. These stocks have been severely undervalued for quite some time and are already moving higher. In fact both the HUI and XAU indexes have posted gains six straight days in a row. This is very promising news for the miners.

Everything is pointing towards new highs in the gold market. There really is not that much room for gold to move to get from its recent lows of $1600.00 to reach the $2000.00 mark. The fundamentals working here are fantastic. QE to infinity is going to play out positively for gold to move up and out fast. New “big” money is entering the gold market now that had recently been parked on the sidelines awaiting lower price opportunities which never came.

If we add China’s instability into the equation the whole market becomes primed towards a very large upside move in gold prices. Reaching $2,000.00 for gold is not a question of will it get there, but rather when. When is this going to happen? Very quickly, possibly by year’s end. Corrections have been on-going in gold for about 1 year now; however we still could see some small bumps along the way in the market as we approach the $2000.00 mark.

But yet the upside potential in the gold market is absolutely shocking. The stage is set for unprecedented highs. So don’t sell out if you’re already in. If you’re out at this time get yourself in no matter the cost. Gold and silver are still highly undervalued and a bargain which will yield investors positive returns many times over, their original prices while at the same time protect your assets and purchasing power along the way.

 

Silver Expected To Jump Over 400% From Current Levels

A large move in the silver market is expected to take place within the next 12 months that could very well see silver’s price jump over 400 percent. Gold is up 13 percent for the year, while compounded annual returns of 19 percent for gold over the past ten year have been met. With massive money printing schemes going on by the central banks the value of paper money has been going down while the price of gold, silver and inflation go up.

Silver’s expected rise can be attributed to various technical and fundamental factors that should be seen starting this fall and into 2013. The recent announcement of QE was just a catalyst to set-off the chain reaction of events that were already in place. The price jump for silver was already in motion and regardless what central bankers, politicians or market manipulators try to do to stop or slow down its accent, it’s price is going to keep moving up regardless. A surge of 400 percent ($150.00) or more is expected from current levels.

 

High Probability UK Banks Could Be Shut Down By Brussels

Surprise, London’s entire banking industry is now under the gun. The possibility of banks being shut down or forced into bailouts funded by tax payers is now a real threat from the contentious banking unions plans out of Brussels. A team of EU officials would assume all-encompassing new powers to control the entire financial sector throughout Europe which would also include the city of London.

This team would also be handed full control in decision making to enforce EU law and mediate any disagreements between Britain and the eurozone regarding any risks caused by British banks. Proposals are now being discussed at the European Commission. The verdict obtained by this powerful body would become an automatic binding agreement if Britain does not win a majority of the backing.

This is all stemming from proposals for a eurozone banking union. A new European Commission blueprint for regulating banks at the EU level. New powers in supervising the EU banks and for supporting stressed financial institutions within the European Union’s southern countries. The new role for the ECB would then be seeing the existing (EBA) European Banking Authority which already has it main headquarters in London be drastically renovated and strengthened.

Brussels is failing to honor on its promises to the eurozone. Brussels also made past assurances that Britain would not be sucked into the economic arrangements of the eurozone. This is all showing that the government’s policy has become a complete and udder failure. Now allowing new powers to be put into place and control its authority onto eurozone and non-eurozone member issues which would now include Britain.

Mr. Bill Cash who is the Tory chairman of the House of Commons European scrutiny committee had said “This must be vetoed as an imperative. We have reached the endgame. It is imperative that there is a vote on this in the House of Commons.”

Bottom-line is that the Government gave support in handing over new centralized powers to the ECB in which to supervise all eurozone banks. This was considered a “very important contribution” in attempting to tackle the eurozone crisis as a whole.

Keep stocking up on physical gold and silver as this whole mess deepens.

 

Tom Genot –
 

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