Gold Is Going To $300 ??

seekingalpha-The SP500 has provided much higher returns than Gold over the last 53 years. Rising interest rates are Kryptonite to Gold. Gold is losing its safe-haven status for investors – for the first time in history investors have a viable alternative to Gold. The current secular trend favors soft assets over hard assets. We’re back … and more bearish than ever on gold! Gold Is Going To $300

We have been bearish on gold since October 2011 when it was trading at $1,800 (see our article published in 2011 Gold on the Verge of a Major Collapse). We then revisited the topic in January 2017 with another bearish article Gold is Dead, in which we forecast gold dropping to $700.   But the prospects for gold are far worse than we imagined back in January. We now see gold dropping to the $300 over the next five to seven years. The fact is that gold is losing, and will continue to lose, it’s safe- haven status for investors, financial institutions, and central banks. The shiny metal will eventually be swept into the dustbin of financial history and be relegated to its original purpose: jewelry and idols. The False “Value” Analogy First of all, we want to address a false analogy that was used by many commentators in response to our January 2017 article: that gold holds its value over time better than any fiat currency because inflation eats away at the value of all currencies. An example: would you rather have received an inheritance of $1,000 in US $100 bills or $1,000 in gold bullion in 1964? The argument in favor of gold states that gold is the preferred inheritance because it would be far more valuable today than the $100 bills.   The argument is presented as follows: $1,000 in gold from 1964 would be worth $34,710 today (in 1964 $1,000 would have bought 28.28 ounces of gold at $35.35 per ounce. Current value = 28.28 x $1,227) The argument then follows that the $1,000 in US $100 bills would only be worth the equivalent of $128.00 today because of the negative effect of inflation on the currency (annual inflation was 3.96% over this period)

The Author

Pramod Baviskar

Professional Market Trader And Owner Of Dalal Street Winners Advisory And Coaching Services. Working Since 2007 And Online Presence Since 2010. We Provide Highly Accurate And Professional 1 Entry And 1 Exit Future, Option, Commodity, Currency And Intraday Stock Tips On Whatsapp With Live Support And Follow Up.

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