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Multiple Factors May Drive Gold Prices - Milling-Stanley

Multiple Factors May Drive Gold Prices - Milling-Stanley

Release Date:  Friday, August 18, 2017

Gold prices rose again this week, at one point rising above $1,300 per ounce, as investors continued to seek safety as geopolitical fears grew.

“Gold prices hit their highest level since the U.S. presidential election Friday, as a terror attack in Spain and political uncertainty stoked demand for haven assets. Gold for December delivery was recently up 0.6%, at 1,300.50 a troy ounce, on the Comex division of the New York Mercantile Exchange. Earlier in the session, the precious metal traded as high as $1,306.90—its highest levels since November. Gold was on track to end the week with three straight sessions of gains, with a number of factors supporting prices in recent days…

“’Gold looks like it’s set up in the perfect storm,’ said Peter Hug, director of metal sales at Kitco Metals. ‘I just don’t see this market tanking unless for some reason there’s some good news that comes out of Washington,’ he said. Gold prices have risen roughly 7% since early July, buoyed by tensions between the U.S. and North Korea and a weaker dollar.” (“Metals: Gold Prices Hit Highest Level Since November,” WSJ, 8/18/17.)

Gold ended the week down $4.50, closing at $1,285.20. Silver prices closed at $17.04, down $0.16.

Multiple Factors May Drive Gold Prices To New Records – Milling-Stanley
George Milling-Stanley, head of gold investment strategy at State Street Global Advisors, identified several factors supporting gold prices that may lead to new record highs.

“Gold’s getting ready for a breakout above $1,300 an ounce and it’s not just because of investor jitters tied to President Donald Trump. ‘The Trump presidency is one element contributing to the generally nervous atmosphere as far as geopolitics are concerned—an important element, but not the whole picture,’ said George Milling-Stanley, head of gold investment strategy at State Street Global Advisors …

“Milling-Stanley stands by his previous expectations for gold to top $1,300 by the end of this year or early next year. He also reiterated his forecast that prices may even trade between $1,350 and $1,400 … Other important elements include Russian President ‘Vladimir Putin’s territorial ambitions, the increasing belligerence of North Korea, the deteriorating relationship with Iran, significant differences of opinion with many traditional allies of the U.S., the fact that American troops are at risk in Afghanistan and Iraq, the intractable problems of the Middle East—including but not limited to ISIS and al Qaeda, Syria, and the worsening situation between Israelis and Palestinians,’ he said …

“’It is the combination of all these factors that is supportive of safe-haven buying of gold,’ he said. There may even be a chance that gold will eclipse the highs of 2011—when prices which touched record intraday levels above $1,900 an ounce. ‘There is always the possibility of a repeat of the inflows of speculative money that drove prices up $500 in just nine months in 2011,’ said Milling-Stanley. ‘When that happens, it would be possible to see prices approach the highs of 2011, and perhaps even surpass them.’” (“Donald Trump isn’t the only factor behind 2017 gold rally,” MarketWatch, 8/17/17.)

No One Needs Gold And Silver More Than Americans – Embry
John Embry, Senior Investment Strategist at Sprott Asset Management, told King World News that Americans need gold and silver to protect themselves against the coming economic collapse.

“The reality is that there are so many things the markets should be factoring in besides a geopolitical event. To a considerable extent this has been reflected in the staggering rise of Bitcoin. But in the end, the real story for monetary value will be turn out to be gold and silver… I find the lack of interest in gold and silver in the United States to be fascinating. In my opinion, no one needs more precious metals protection than Americans these days. The US is in the early stages of an economic recession that could easily morph into a depression. Its finances are in disarray with record debt levels in all sectors of the economy — government, corporate, and consumer. And the upcoming debt ceiling debate in Congress could prove disruptive. In addition, the social cohesion appears to be breaking down ...

“I have believed for some time that we are in the endgame for the global bailout that occurred in the wake of the financial crisis of 2008. Absolutely nothing has been corrected. The bubbles are dramatically larger and the powers that be have little left in their arsenals other than unlimited money printing accompanied by propaganda that attempts to obscure reality. Gold, silver, platinum, and their respective equities remain on the bargain counter while virtually nothing else is ….” (“John Embry – Deep State Operatives Becoming Desperate As Gold & Silver Near Major Breakouts,” King World News, 8/16/17.)

Farber Tells Investors To Own Gold For “When The Lights Go Out”
Dr. Marc Faber, editor/publisher of the Gloom, Boom & Doom Report, believes the next war will be a cyber-war which attacks our infrastructure, requiring Americans to own gold outside of the banking system.

“Take it from ‘Dr. Doom’: own some physical gold and keep it out of the banking system. Dr. Marc Faber, a legendary investor and the editor/publisher of the Gloom, Boom & Doom Report, is well known for his contrarian investing style. [H]e noted that the biggest geopolitical risk for Americans today is not a conventional war but rather cyber-attacks that could take down the US power grid. In such a scenario, gold would become an irreplaceable medium of exchange. But it’s not the only reason to own gold today…

“Regarding a possible war, Faber believes it’s unlikely that anyone will ever invade China or the United States. He thinks the true vulnerability lies in ‘wars that are fought not with tanks—they are fought by, say, somebody could switch off the light in New York, or the electricity, or the Internet. If you switched off the Internet, what would happen?’ This is where the merits of gold bullion become obvious, he says: “In these times, you actually want to have access to something physical that is a recognized medium of exchange…”

“He believes ‘that the recovery, globally, is very weak’ and the rapidly growing unfunded liabilities are a clear threat that could lead to another financial collapse. ‘By being in equities and by being in gold, and also having some exposure to bonds, you have some diversification,’ he says. ‘Then you can hope when the hour of truth occurs, you will only lose, say, 50% of your assets, but your neighbor loses everything. So relatively speaking, you will have done very well.’” (“Marc Faber: In The Age Of Cyber-Terrorism, Every Investor Must Own Gold,” Gold-Eagle, 8/17/17.)