Time to Be Bullish on Gold and Precious Metals

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Includes: GBRRF, GDX, GLD, NG, SLV, TRQ
by: Henrique Simoes

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 (NYSEMKT:NG), Ivanhoe Mining (IVN) and Gabriel Resources (OTCPK:GBRRF).

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