Time to Be Bullish on Gold and Precious Metals

I believe that the policies governments are pursuing all over the world and especially in the United States are highly inflationary. They are running the printing presses as hard as they can. The result of these actions has to end in inflation. Furthermore, the United States government won`t be able to pay the debt unless it monetizes it via the printing presses once again.

This environment is very bullish for gold and hard assets. I urge you to consider buying gold and gold related assets like gold miners.

There are several pundits with variants of this argument. For instance Peter Schiff thinks gold still has a long way to go in this bull run and said earlier this week in his Radio Show, 'Wall Street Unspan' that,

“If you look at some of the bullish calls from the major brokerage firms, people are saying, gold 1,000 dollars, gold 1,200 dollars. These are not crazy calls. By the time you [see] the end of the gold bull run, [the] price of gold will be at 5,000 dollars and somebody will come out and say that gold is headed for 20,000. You are going to have outrageous calls."

This week, Marc Faber mentioned his bullishness on Gold Stocks, favouring Novagold (NG), Ivanhoe Mining (IVN) and Gabriel Resources (GBRRF.PK).

Jim Rogers is also bullish on hard assets, even if he prefers silver to gold. In one of the best articles published here on Seeking Alpha this year, Doug Casey referred that “speculation in gold stocks makes sense at this point, because gold stocks are as cheap as they`ve ever been relative to other assets”.

Doug`s main argument is that the waves of money being printed around the world will cause much higher gold prices and can cause a speculative mania in gold stocks.

Hard assets are probably the way to go for the less adventurous investors, while the risk takers should consider positions in gold stocks.

Disclosure: long SLV

Comments

[HonestMoney:]

Physical bullion yes. Goldmoney.com and Bullionvault.com yes. SLV NO! I believe the ETF is a scam where they lease silver to CRIMEX.

seekingalpha.com/artic...

www.runtogold.com/2008.../

penningtoncoins.com/20.../

Mar 08 07:50 AM

[HMS:]

Fine analysis on Gold and Gold to Stock market ratios here,

peterschiffblog.blogsp.../

Mar 08 08:15 AM

[arlin:]

A recent article on seeking alpha, and interview with John Doody is well worth anyone's time.
John only invests in companies involved in finding and mining gold,such as AUY. here is the link if your interested.
seekingalpha.com/artic...

Mar 08 10:04 AM

[arlin:]

A recent article on seeking alpha, and interview with John Doody is well worth anyone's time.
John only invests in companies involved in finding and mining gold,such as AUY. here is the link if your interested.
seekingalpha.com/artic...

Mar 08 10:04 AM

[CLH:]

Time to be bullish on gold? Gold is the only bubble left. It hasnt gone down because of fear. There is no inflation as far as the eye can see. Equities are grossly under priced and you buy gold?

Mar 08 10:40 AM

[Crude Oil T...:]

You are spot on with the looming inflation coming that the government's printing presses have created. Those left working won't be able to afford anything.

Great post!

Check out our crude numbers and calls at crudeoiltrader.blogspo...

Mar 08 10:59 AM

[The Geoffster:]

Remember the 70s? Stagflation ahead!

Mar 08 11:06 AM

[optionsgirl:]

Are you not a little late to this party?

Mar 08 11:19 AM

[GMiki1:]

It's certainly not too late to buy physical gold and silver or mining stocks. Or oil/energy in some form.

Mar 08 11:35 AM

[Jake2:]

Zero new content in this article. Author has been asleep.

Mar 08 01:01 PM

[User 367844:]

Right print paper - devalue the currency and China will say to the America's we want bonds with a guarantee - the guarantee will be bold bonds - the price of gold will soar or China will stop buying junk bonds. I expect gold to double in vlaue by the end of 2009 if not more. ig investors are selling - they have cash flow problems - small investors are buying. When the big boys run out gold; low supply and a big demand means the price will soar. Although, how long will the price remain high - investors will want a return - so they will start selling at some point. My guess is when the value of the dollar is really low and they can meximise their profit.

Mar 08 01:08 PM

[KENMEISTER:]

Nothing new, but still, a good, concise summary about gold and precious metals.

Mar 08 03:36 PM

[silverinfo:]

We are buying up and earning as much silver bullion and pre-1933 gold coins and Canadian Maple Leafs that we can. Conducted a survey of 14 metro Detroit coin shops on Friday, only one had a one ounce French gold bar for sale. Some Gold Eagles and Maple leafs were available.

Very few had any silver bullion and only one had ASE's. Those that had silver wanted $4.00 0ver spot. Only two had 100 oz. silver bars.

Personally I think the flight from cash, stocks, bonds, etc. is in full flight and we don't see it landing for awhile. We have our members in different states conducting surveys, will report back with the results.

Mar 08 06:53 PM

[mauijeff:]

The SLV and GLD ETFs are derivatives. They are not vaults with the metals. These ETFs lease there metals freely. Almost all of their metals have multiple claims. If you want to invest in silver and gold you should use the Central Fund of Canada (CEF). The CEF holds it's metals unencumbered.

Mar 09 04:04 AM

[Charlie Bottle:]

The government strated printing money in earnest in September, if anything recently stopped increasing its balance sheet (perhaps only tmeporarilly). Inflation remains ver very low, bordering deflation. What is new to prompt this article with ZERO insight?

Mar 09 05:06 PM

[Alpha Gold Bug:]

I knew this would happen after seeing all the coverage on Bloom and CNBC as well as others in the last week or so. The word must have been put out. Make sure all your people do the right thing here and cover these things heavily, make sure you get a few guests on that are positve about this stuff.

We want everybody to get the fever. Let all your hosts know that this is are only chance to get the word out in time. Whats the word you might ask? Well its obvious isn't it? I mean who could not figure this one out? I mean this just can't be a coincicdence can it?

Why would they all start talking about it at once? I mean there hasn't been a peep about it for years, if ever, that I can remeber! So you really got to be wondering what in the heck am he talking about?

Well let's just get right to the point shall we! I am talking about their guests love affair with PM mining shares. Yeah, they are trying to get everybodies attention so everybody takes a look while they start smashing and mauling these things so you won't touch em with a ten foot pole, thats what I'm talking about.

They have been doing it with Gold for sometime know even though they are having a hard time keeping it down they always give attention to it right before they smash it.

So don't buy any of them gold or silver mining stocks for a quick trade as they will teach you the lesson they want you to learn. Those stocks go down hard and fast, I guess I better stay away from those money losing stocks. Huh!

Mar 17 05:21 PM

[PeteK:]

Through out history, in China & India and most Asian countries, people only trust gold and silver. This was taught from generations to generations. Money can become gabage next week, but gold won't change a bit. After WW2, the Chinese people used the paper money printed by the Nationalist Gov for fuel for cooking.
You better believe it !!

Mar 28 02:58 PM