Thursday, May 12, 2011 5:02:23 AM
Buy gold and silver on the dip as US Treasuries lose appeal
May 10, 2011 12:29 PM EDT
Gold’s decline last week provides a good opportunity for investors to buy on the dip.
“Bargain hunting aided by a weakening of the USD [US fiat dollar]
and recognition that markets had become oversold” has already
sparked an initial rally, stated a Credit Agricole report.
The imminent Greek debt restructuring – highlighting the
weakness of fiat currencies – also boosted gold.
From a technical perspective, gold is looking bullish on “daily,
weekly and monthly cloud charts,” stated the Credit Agricole
report.
Moreover, the International Monetary Fund (IMF) has reported
that the central banks of Mexico, Russia, and Thailand have
continued to buy gold.
These central banks have become wary of US-dollar denominated
investments, particularly US Treasuries.
At current yields, “U.S. Treasuries and the bond market in
general are being ‘repressed,’ ’capped’ or simply overvalued
compared to the prior 30 years,” said Bill Gross of PIMCO.
Gross is referring to the fact that US rates across the yield
curve are often at or below inflation. Holder of Treasuries –
like foreign central banks, for example – therefore lose real
value on their principal.
Moreover, Asian officials are complaining that QE2 is
monetizing the US debt.
It’s not just Asian central banks that are buying gold, however;
Asian consumers are also snapping up physical gold.
On the back of these supportive fundamentals, last week’s
decline provides an attractive entry for new gold investments.
DD...USA / USSIF silver mines bargain play....
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=62995433
May 10, 2011 12:29 PM EDT
Gold’s decline last week provides a good opportunity for investors to buy on the dip.
“Bargain hunting aided by a weakening of the USD [US fiat dollar]
and recognition that markets had become oversold” has already
sparked an initial rally, stated a Credit Agricole report.
The imminent Greek debt restructuring – highlighting the
weakness of fiat currencies – also boosted gold.
From a technical perspective, gold is looking bullish on “daily,
weekly and monthly cloud charts,” stated the Credit Agricole
report.
Moreover, the International Monetary Fund (IMF) has reported
that the central banks of Mexico, Russia, and Thailand have
continued to buy gold.
These central banks have become wary of US-dollar denominated
investments, particularly US Treasuries.
At current yields, “U.S. Treasuries and the bond market in
general are being ‘repressed,’ ’capped’ or simply overvalued
compared to the prior 30 years,” said Bill Gross of PIMCO.
Gross is referring to the fact that US rates across the yield
curve are often at or below inflation. Holder of Treasuries –
like foreign central banks, for example – therefore lose real
value on their principal.
Moreover, Asian officials are complaining that QE2 is
monetizing the US debt.
It’s not just Asian central banks that are buying gold, however;
Asian consumers are also snapping up physical gold.
On the back of these supportive fundamentals, last week’s
decline provides an attractive entry for new gold investments.
DD...USA / USSIF silver mines bargain play....
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=62995433
My opinions are my own and and DD I post should be confirmed as unbiased
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