Gold bug Ed Bugos is sure of a bright future for the precious metal. He says the only real obstacle to a gold bull run is full monetary (not asset) deflation. And the way the Fed is expanding credit, this seems like an unlikely scenario. Ed says this means a boom in gold mining is just around the corner.
“The market exists to discover value,” says gold bug Ed Bugos. Right now, it’s betting on deflation. But Ed says the feds will succeed in reinflating the economy. This means the gold market will shrug off the deflation scare and recover soon. There are three strong reason why the Fed will fail to tighten money supply.
Gold prices got hammered last week after Congress’s passing of the bailout bill boosted the dollar. Spot gold fell as low as $825 per ounce. However, gold futures rose more than 3% this morning as investors sought safety from tumbling global equities. Gold bug Ed Bugos says gold prices could be about to skyrocket. The Fed is increasing bank credit at an unprecedented pace.
Mr. Market is on bailout watch. The Dow has been whipsawing wildly since news of the bailout first broke. The index is currently 3,454 points off its 52-week high.
Hard assets aren’t doing much better. Crude oil is selling for about $97 a barrel. Analysts at Merrill Lynch say prices may fall as low as $50 a barrel next year.
Gold prices have also been volatile. Nevertheless, Ed Bugos says, “Gold is the safest asset class to be in right now.” He also says it’s a great time to cherry pick gold assets and pick up “alpha” gold stocks at bargain prices.
Gold prices have fluctuated wildly in the last week as jittery investors reacted to the meltdown in the financial markets and the government’s bailout proposals. Ed Bugos says gold’s fundamentals remain strong, however. He says the recent correction was a mistake by the market and that the outlook for rising inflation and a tumbling dollar makes a strong case for gold. Ed says investors should take advantage of short-term price dips to buy the shiny metal on the cheap.
Gold futures fell for a third day yesterday. They were driven down by sliding crude-oil prices and a strengthening dollar.
For gold bugs, the yellow metal now sells at a depressingly low $808.20 an ounce on the Nymex. There’s worse news on the horizon. Jon Nadler, senior analyst at Kitco Bullion Dealers, says gold “appears poised to retest the $775 zone.”
Gold bug Ed Bugos isn’t sweating it. He says central banks and their inflationary policies will see to it that gold will surge again. Ed has ten very solid reasons why we’re about to see the last of cheap gold.
Are the commodities markets changing track?
Yesterday, gold prices hit a 10-day high at $839 an ounce, crude oil prices soared overnight in their biggest rally for three months to settle at over $120 a barrel and the dollar saw its biggest monthly loss against the euro since mid-July.
These price movements will not come as surprise to Contrarian Profits regulars. Last Thursday, The Sovereign Society’s Eric Roseman urged investors not to abandon gold because he didn’t believe the dollar rally would last.
This deal is a must-own for your portfolio…But before I tell you what it is, I want to give you a sense of how big this really is: It’s exactly like being there for the birth of the offshore oil and gas industry.
There is a “very real chance” gold prices could be above $1,000 an ounce by year-end, and hit a new peak beyond that, according to Mark Bristow, CEO of Africa-focused gold miner Randgold Resources (NASDAQ:GOLD).
However, gold prices fell steeply in New York overnight following a stronger dollar. Gold for August delivery closed at $902.90 an ounce on the Nymex yesterday.
Gold bug Ed Bugos sees two possible scenarios for the precious metal. Ed says neither the bulls nor the bears are in charge. Gold prices could fall to $750 an ounce just as easily as they could rise to $1,200 an ounce. More from Ed…
Grading a junior is an important process where many analysts fall short. Grading juniors is much different than grading a major gold producer — that’s why gold bug Ed Bugos has came up with a set of concepts to always look for in my junior recommendations.