Three Reasons for Higher Gold & Silver Prices
BY PETER DEGRAAF
With all of the money printing that is going on worldwide, it beats me why a number of analysts are predicting that the price of gold and silver is going to fall, after gold has just corrected by 19% and silver by 40%.
Featured is the ‘Bullish Percentage Index’ from the GDM gold producers, with the price of gold bullion added for comparison at the top. The index is turning up at the most oversold point since the credit crisis of 2008. The gold price then rose from $760 to $1010 over the next 3 – 4 months. Since the credit crunch, every time this index has dropped below 30%, it has turned out to be a buying opportunity. Why would anyone expect the price of gold this time to produce a different outcome?