Blackmont Capital Bullish on Gold and Silver

Blackmont Capital is raising its long-term forecast for both gold and silver to reflect the bullish sentiment for each metal. Gold moves to $950 from $850 per ounce and silver climbs to $14.50 from $14.00 per ounce.

Analyst Richard Gray told clients:

The primary driver for a higher gold price continues to be a further weakening of the U.S. dollar while inflationary concerns, geo-political tensions, and the metal’s status as a safe haven are also expected to play a part.

His silver price forecast is based on a gold:silver price ratio of 65:1, which is a compromise between the 53:1 average witnessed in the first eight months of 2008 and the 76:1 seen in the turbulent final four months of the year.

“The gold:silver ratio increased dramatically as the state of the economy worsened in September 2008,” Mr. Gray said, adding that he expects silver will rise in the second half of 2009 as the gold price moves higher, the gold:silver ratio contracts, and liquidity creeps back into the market.

Blackmont also modified its cost estimates for 2009 and beyond to reflect lower exchange rates in gold producing countries, declining fuel prices and the softening of other industry costs as the lower recession-driven demand begins to trickle down to price contraction for the miners.

Mr. Gray’s top picks are Goldcorp Inc. (GG), Agnico-Eagle Mines Ltd. (AEM), Jaguar Mining Inc. (JAG) and First Majestic Silver Corp. (FRMSF.PK).

Comments

[bosun.j:]

Buy the bullion. Avoid the paper silliness.

Jan 08 09:11 AM

[User 30121:]

bosun j.: Amen!

Jan 08 10:33 AM

[traderstraffic:]

Gold is being manipulated so Mr. Brown can buy his countries gold back before they crash the paper money

Jan 08 10:36 AM

[Gold Barron:]

2011: The year of Silver

Jan 08 12:13 PM

[12345:]

Silver is in the 11's per oz not $14.

Jan 08 04:24 PM

[sandspider:]

I firmly believe in being diversified. I have physical possession of gold and silver and I have gold and silver stocks. Very nicely diversified.
Long on FRMSF.PK, AUY, AXU, GG, PAAS
Short everything else...yes sir I am diversified.
Once all of those trillions of fiat paper $, lb and what have you start to pick up velocity...my diversification will speak for itself.

Jan 12 12:58 PM

[whitetaxes:]

see if you can buy it at $11 per oz.


On Jan 08 04:24 PM 12345 wrote:

> Silver is in the 11's per oz not $14.

Jan 12 04:15 PM

[whitetaxes:]

see if you can buy it at $11 per oz.


On Jan 08 04:24 PM 12345 wrote:

> Silver is in the 11's per oz not $14.

Jan 12 04:15 PM

[whitetaxes:]

see if you can buy it at $11 per oz.


On Jan 08 04:24 PM 12345 wrote:

> Silver is in the 11's per oz not $14.

Jan 12 04:15 PM

[Gls.:]

Don't be one of the lemmings racing to buy silver when hyperinflation kicks in...it will be too late ! and if your only holding paper for silv.add it to your toilet paper roll...cause that's what it's worth.

Jan 24 09:21 AM

[mwfall:]

don't be so hard on toilet paper.

Jul 03 10:34 AM