Americas Gold and Silver Corp (USA)

[NYBob]

USA Silver appears ready to rally once again but prices
have not yet broken out above the 10-week, 50-day moving average.
A rally is needed to accomplish this, and the LT Ag bull picture
will then be further approved -




While $10,000 may seem outrageous,

gold rose nearly 2,500% from 1971

to 1980 but is only up 550% from the lows of 12 years ago,
says analyst John Ing.

What follows is excerpt from John Ing’s January gold report.


Ing is a gold analyst and President of Maison Placements Canada in Toronto.

Gold was up last year for the 12th consecutive year, the longest in
at least nine decades. Gold rose 7% last year, spurred by ETFs as
well as central bank buying.

Gold has rallied from $250 an ounce, moving almost eight times to a
high at $1,920 in 2011, but still shy of the inflation adjusted
price of $2,500 an ounce.

However, gold lately has not been as precious, frustrating both
bulls and bears despite fears about the US economy, political
gridlock and more quantitative easing.
In the past, these influences would act as a
catalyst for stronger prices.

Central banks are the largest official holders of gold with some
31,000 tonnes of gold in their vaults.
In fact, they have been big buyers with more than fifteen banks on
the buy side in an effort to diversify their reserves in response
to growing concerns about a weaker US greenback.

Under Basel 111, gold was rerated from a Tier 3 asset to Tier 1,
allowing banks to buy or hold gold instead of sovereign bonds.

Central bankers will continue to be big buyers of gold.
However, ETFs or the people’s central bank established in 2003
bought some 2,632 tonnes, holding slightly less than
the IMF with 2,814 tonnes.

Although nearly 40% of the world’s supply is recycled, the only
source of new supplies are the gold miners, which lost nearly 25%
[of stock market value] since late 2011.
Miners’ cash costs are a concern as mega-billion projects
bring mega problems.

But the industry has got religion.
Most will emphasize profits over growth.
Dividend hikes are likely and M&A actually will see the cast-offs
of higher cost mines.

Growth has given way to profits.
Moreover, we expect emerging signs of a shortage of physical gold
as gold miners’ production peaked.
To supply this demand, the gold miners produced
only 2,700 tonnes of gold annually.

The only other source of gold is the estimated 22,000 tonnes in-situ
reserves held by the gold miners in the ground, but that must be
extracted at a cost of $1,000 an ounce.

We believe the in situ-reserves will be more highly valued, causing
a reversal of the equity downtrend.

The bull market for gold shares has just begun.

Gold stocks have never been so cheap

Chinese gold demand fell in the third quarter due in part to the
lull before the leadership change.

We expect a resumption in demand that will see China consume more
gold than any other nation, beginning in the current quarter.

China alone has 1,084 tonnes, however that represents
less that 2% of its reserves.

If China were to increase its holdings to 10%, that could represent
at least three years of the world’s output.

Still, China is the fifth largest holder behind the United States.

It remains the largest holder with 8,133 tonnes held at Fort Knox.
It doesn’t matter then, who owns the gold, whether a central bank,
ETF or my wife.
Gold has the same value whoever owns it.
Gold has been range bound.
In the short term, gold needs to break through $1,700 an ounce.

Gold is a hedge against the consequences that the world’s central
banks will eventually ignite inflation.

This fear also explains why the idea of a return to a gold standard
has appeal, particularly when every major currency has fallen
against gold.

Gold has simply become the world’s new global currency.

Gold is a hedge against debasement of currencies as well as an asset
of last resort among central banks and investors.

As such, we have raised our new target to $10,000 an ounce.

While $10,000 may seem outrageous, gold rose nearly 2,500% from 1971
to 1980 but is only up 550% from the lows of 12 years ago.

by Maison’s John Ing,
continues to lead First Coverage rankings -
http://business.financialpost.com/2010/07/28/maisons-john-ing-continues-to-lead-first-coverage-rankings/

There is a lot left in this bull market.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=83621454
God Bless