10-10-11 | Constantly asked questions - Gold

During the last three weeks, I have received so many questions about Gold.  These questions were from anyone and everyone.  Let's face it, the vast majority of people were concerned and need reassurance as they watched their investments free-fall each day.  

The general question was, "is Gold going to go up or continue to fall."   My answer was simple, "Go Up!  Gold will continue to rise.  That is my opinion and I am sticking with it."

Corrections along the way are expected and healthy.  Many factors came into play, all at the same time, to cause this rapid decline.  It did not help that margin requirements were increased during such a vulnerable period.  This served to facilitiate the decline.  Gold is rebounding, Silver is rebounding, all the metals are increasing again.

This three week shake up was good because it eliminated many of the traders who were not well-capitalized.  The end result is the metals took a downturn, they stabilized and are now on the upswing.  To me, this was healthy and needed.  This shows the strength of Gold and Silver.  Look at their lows and then look at where they are trading today.  Please remember, this cycle is only a snapshot for a three-week period.

Take into consideration every major country has been increasing the amount of Gold they have in reserve. 
I believe the Central Banks have been the largest purchasers of Gold during the decline. 
China has ATM's in which you can purchase Gold bars (China has been telling their people to purchase Gold for the last three years!)  
This Gold ATM program has been so successful that China is increasing the number of these ATM's.  
China sells coins in so many stores.  They promote the coins they produce.           

If you are going to invest in the yellow metal, be prepared for the large variances in price.  I use these as buying opportunities.  I am a believer in the long-term outlook of both Silver and Gold.  It's my opinion purchasing Gold and Silver at any price near current levels will prove to be a bargain in the future.  Just my opinon but this is what I am doing.

Please contact us with any questions at npb@MajesticRarities.com    

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