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Market Comments from Jerry Williams – Feb. 13, 2014

IF SOMETHING CAN’T LAST FOREVER, IT WON’T

 While the rest of the world is focused on the latest jobs report or unemployment numbers, our view from an investment perspective is that none of that matters.

A far more serious issue, affecting our dollar and our government’s credibility, is the status of Germany’s gold stored here in the U.S.  They want their 300 tons back.  We can’t, or won’t, give it to them.  Not for seven years anyway.  The media is starting to ask questions.  For full details go to https://www.freemansperspective.com/germanys-gold.

Currently, gold and silver have settled into a tight trading range.  Investment advisory consensus is 100% bearish, something I have never seen in 40 years in this business.  The theory of contrary opinion suggests that one should bet the other way.  This raises the questions of who is left to sell and where did all that sold gold go?  No one and China.

In my opinion, the $800-$1000 gold price forecasts we see now are just as out of line as the $2500-$5000 targets were 2 years ago.

Our philosophy remains unchanged.  Buy gold and silver (REAL MONEY) with a long-term time horizon.  One should allocate at least 10-15% of savings as a hedge.  Do not bet the grocery money or engage in short term trading.  Sell only when you have to.  That strategy worked very well from 2000 to 2011 and it will again.

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