15AUG2016: Gold prices were steady this morning hanging onto $1340. Some analysts attribute this stability on the summer time blues when other markets take a breather and gear up for the coming cycle. What’s interesting about gold right now is despite a rosy jobs report and ultra-low oil prices, gold seems to be holding its own. The 3rd quarter began with gold at $1342 and moved higher to $1366 and then back to current levels. We believe gold could test $1400 by the end of the 3rd quarter, but not until after a move lower to the $1325 level…mild volatility for highly volatile times.
Silver meanwhile keeps steamrolling forward pushing the $20 per ounce level. Everyone knows silver is cheap when compared to gold with today’s ratio 68:1. We think silver has a solid chance to improve against gold in 2017 with a 50 – 60:1 ratio possible. With gold projected higher than $1400 sooner than later, we could easily be looking at 2017 silver trading in $23 – $28 per ounce range. Our biggest question is, what’s going to stop this from happening? Silver`s resiliency has been proven time and again. The core fundamentals look really strong moving ahead 18-36 months and we believe silver is at a perfect buying level today!
Too much has been said about when the best time to buy and sell may be. We have seen a considerable amount of selling the past 3 months. Much of this selling has been from customers who bought on the higher end only to see gold and silver prices fall dramatically. 2016 has given some of these earlier investors who feel they bought on the high side a chance to cut their losses with silver up nearly 40% YTD and gold pushing 25%.
We feel the best “investment” opportunities give you income, interest and pays dividends whereas hard assets like gold and silver bullion that you hold privately is the ultimate insurance policy for your wealth. Sure the metals prices may double or triple someday, wouldn’t want to be sitting top heavy cash in that event!
Disclaimer: Midwest Bullion Exchange, Inc. is a precious metals broker/dealer and is not a licensed investment adviser. Although we strongly advocate programs that allow you to hold precious metals in your retirement, we cannot predict the future performance of precious metals or programs that allow precious metals. Furthermore, we recommend that you consult with a professional tax adviser when making decisions that carry tax liabilities. Midwest Bullion Exchange, Inc. reserves the right to decline services to individuals after it has been determined the products and services offered by Midwest Bullion Exchange, Inc. are not suitable for the individual. The author has made every effort to ensure accuracy of information provided; however, neither Midwest Bullion Exchange, Inc., nor the author can guarantee complete accuracy. This article is for informational purposes only. Midwest Bullion Exchange, Inc. and the author of this article do not accept any fault for losses and/or damages arising from the use of this publication.