“I’m excited to say that I’ve just had a long-term buy signal on gold. It’s the first such signal I’ve had since 2009. This is a long-term buy signal – not a sign gold will rocket within days.” (Dominic Frisby, Moneyweek.com, 11.02.2015)
Here at Bleyer, we encourage our clients to view Physical Gold and Silver as products best to hold long. We are not a trading platform and do not deal in ETF’s. So the following article released yesterday as part of Money Morning: Essential Investment and News Insight from Moneyweek.com is particuarly apt reading for our clients. We hope you enjoy it. If you have any questions call one of the team on 01769 618618 or email [email protected].
Dominic Frisby writes: “Let me start by issuing a couple of disclaimers. This signal doesn’t mean gold is going to go up next week, or even next month. It is very much a long-term signal. So forget the day-trader – this is one for the dude who has better things to do than stare at daily market fluctuations on his or her screen and who only occasionally makes significant changes to his or her portfolio.
(In fact, as it happens, short-term, I actually have gold on a ‘sell’ signal.)
I should also add that this is just one technical indicator. It is not reason in itself to go out and bet the house. Before making any investment decision, you have to add up all the pros and cons, work out your risk, your time horizons and so on. What I’m about to describe to you is just one thing to add to the pros column. That said, I like what I’m seeing. This signal only comes once every few years.”
His entire article on this new and current Buy Signal for Physical Gold makes for great reading; the facts speak for themselves. Take a look and judge for yourself.
Currently, we believe, along with many other metals commentators, that Physical Gold and Silver exist in a market that is constantly trying to break free of manipulation. It bears repeating that the price at which we buy and sell Physical Gold and Silver is set by the paper market. So on any given day we can often see a situation where the demand for Physical ounces is rising but the paper price is falling. It is a very strange situation. I can’t think of a comparison. Yet all the while the economic and geo-political fundamentals affecting the demand for Physical Gold and Silver are not going away, but instead increasing their pressure from international horizons.
These fundamentals are succinctly summed up in this article kindly reproduced on Zerohedge by Gary Christenson of Sprott Money. He concludes: “Does it amaze you that a central bank can print a billion euros and then use that newly created “money” to buy gold?”
How is it that all these market fundamentals are increasing the pressure on the price of Physical Gold and Silver, yet we’ve seen the paper price consolidate for so long? But like we often say, the upside is this continues to give our clients a buying opportunity.
One of the major factors that affects the price-rise of Gold and Silver is Quantitative Easing. We’ve discussed this several times on our blogs. Many of you will remember what happened during QE Round 2 at the end of 2011. We at Bleyer remember it clearly; because we had a wait of 5 weeks on 1kg Silver Bars! Our refiners could hardly produce the bars quickly enough; every bar coming out of our LBMA Good Delivery Lists was already allocated to a client on our books before it even left the refiners. There was no jumping the queue.
Many think the value of Physical Gold and Silver go up during Quantitative Easing but in reality the value of Gold and Silver stays the same but it just takes more devalued paper currency to buy the precious metals. In truth, it is the value of paper that is falling. That is what Quantitative Easing produces. In contrast, the value – as opposed to the ‘price’ – of Physical Gold and Silver is remarkably stable throughout history, which is why it is such a sought-after safe-haven for wealth protection.
In addition to his article in Moneyweek.com, Dominic Frisby has – as I type – just published another piece today exploring the joys of Quantitative Easing in Breitbart London. The European Central Bank unveiled in January a massive new QE push that will last until September 2016. If you’ve been a long term subscriber to our Newsletters you’ll know what this term means. If not, take a look at either Breitbart and / or enjoy one of our favourite videos from 2011 by Clark and Dawe. As Bleyer’s CEO, Caroline Peers, discussed with me this morning, “We at Bleyer have been on this for over five years now and these fundamentals do not go away”.
As summarized by Frisby: “Global debt cannot be repaid. Seven years since the financial crisis – a problem of too much debt – global debt has increased by $57trn, government debt alone by $25trn. This is because a decision was made back then to, yes, kick the can rather than face the music. To put the meaningless number a trillion into some kind of perspective: if you spent a million dollars every day since the birth of our Lord Jesus Christ, assuming he was born in the year 0, you would still not have spent a trillion dollars. I repeat global debt has increased by $57 trillion in the last seven years. The plan to pay the debt that can never be repaid is with a little bit of cutting – so-called austerity (but for all the noise that hasn’t actually happened); with a little bit of growth (that’s sort of happened a little bit) and with a lot of debt devaluation (that has happened and will continue happen). But as long as money remains the issuance of governments, they can carry on finding ways to kick the can, rather than face the music. It really is one rule for them and another for us. And, by the way, this whole rigmarole of fiscal can-kicking via monetary manipulation (rather than default, jubilee or repayment) is precisely the reason why the youth across the entire Western world are so hopelessly priced out. Cans have been kicked and left for them to deal with.”
To protect both your own wealth and the wealth of your children and grandchildren, consider owning some Physical Gold and Silver. Call Bleyer and browse our wide variety of bullion bars and coins. Finally, you may really enjoy a blog from September 2014 entitled “Teenage Investor Thinks Outside the Box!” (Proud to admit he is my son) and better yet email it to a young person! It is good when financial awareness and responsibility start young.
Browse our Products pages, from Silver starting at very accessible prices, through to large orders of 1kg Gold Bars and call one of the team on 01769 618168 to start your accumulation of Physical Gold and Silver.