Jeffrey Nichols

Gold Market Confusion: Record Physical Demand Collides with Paper Destruction

Gold’s relative price strength in recent days — in the face of plummeting U.S. consumer and producer prices, declining prices for oil and other (non-precious metals) commodities, and lower multi-year lows in world equity markets — suggests that the yellow metal, technically speaking, may be building a solid base in the $330 to $350 range from which to embark on a sustainable advance into higher territory.

It wouldn’t surprise me if in our lifetimes we never see gold back below $700/oz.rised if gold never again drops below $700 an ounce in our lifetimes.

Gold in the Low $600s?

Gold’s relative price strength in recent days — in the face of plummeting U.S. consumer and producer prices, declining prices for oil and other (non-precious metals) commodities, and lower multi-year lows in world equity markets — suggests that the yellow metal, technically speaking, may be building a solid base in the $330 to $350 range from which to embark on a sustainable advance into higher territory.

It wouldn’t surprise me if in our lifetimes we never see gold back below $700/oz.rised if gold never again drops below $700 an ounce in our lifetimes.

Precious Metals Shine in This Environment

The following is from my November 12th post on NicholsOnGold.com:

The United States Treasury and the Federal Reserve are throwing a trillion dollars, more or less, into the banking system. And, there’s surely much more to come.

It’s not only the U.S. monetary authorities pumping up the money supply. Their counterparts in every major economy - including the United Kingdom and the Euro zone, China, Russia, Japan and on and on - are doing likewise.

We have never - in the history of money - seen such an expansion in its supply without, after a period of time, a rapid deterioration in its value, in other words, without a rapid increase in the overall price level. More than any other factor influencing the gold market, it is the inevitable rise in price inflation that will propel gold skyward in the next few years.

Saudis Made Right Decision in Refusing IMF Request, Investing in Gold

The following comment is taken from my November 12th post in NicholsOnGold.com:

The United States Treasury and the Federal Reserve are throwing a trillion dollars, more or less, into the banking system. And, there’s surely much more to come.

(I’m reminded of that wonderful repost by Nelson Bunker Hunt when, in 1980, after going broke in silver, asked by a reporter what it felt like to lose a billion dollars. Hunt shot back: “A billion dollars ain’t what it used to be.”)

It’s not only the U.S. monetary authorities pumping up the money supply. Their counterparts in every major economy - including the United Kingdom and the Euro zone, China, Russia, Japan and on and on - are doing likewise.

We have never - in the history of money - seen such an expansion in its supply without, after a period of time, a rapid deterioration in its value, in other words, without a rapid increase in the overall price level. More than any other factor influencing the gold market, it is the inevitable rise in price inflation that will propel gold skyward in the next few years.