This will be kept short and sweet since the points to be made are really quite simple.
Don’t sell your gold and silver based on what’s happened in recent days and the growing cacophony of negative sentiment in this market.
As prices have tumbled, investment banks have been in a competitive race to see who can downgrade their gold and silver price forecasts further and faster.
Don’t listen to them – their last ones weren’t very good (that’s why they are revising them).
What makes you think their new forecasts are any better?
Here’s why you shouldn’t listen to them and why you should hold onto your gold and silver.
Gold and silver prices will go far higher for one of two reasons:
- We enter a high inflation environment.
- We have another major financial crisis.
If you think that both of these outcomes will be avoided, then, by all means, dump your precious metals.
If I thought that we were on track for faster economic growth without higher inflation that would also have us sidestepping another major financial crisis, that’s what I’d do.
Today’s report on consumer prices (as detailed here) includes a sharp rise in core inflation and a huge 13 percent jump in energy prices that has yet to show up in the government’s data. This suggests that the last two years of tame inflation data may soon come to an end.
As for the common perception that the