Why is Mr. Smith so bullish on gold?
WorldNetDaily
There has never been a more critical time to understand the economic realities heading toward America in 2010. Investors are searching for smart alternatives after suffering through a global credit meltdown, a housing crisis, a "lost decade" on Wall St. and a chronically weak U.S. dollar.
Last week gold prices retreated to $1,100 an ounce on dollar strength amid a growing global debt crisis. But few expect this 'Santa rally' in the dollar to last long.
"Gold is again exhibiting how a healthy bull market correction works. Gold's 10% correction this month could expand, perhaps to 15%, even 25%, like we saw in 2006 and in 2008 from $1,000/oz. to $750/oz. But this multi-decade gold bull market remains strong and today offers another great opportunity to buy the dip," says Craig R. Smith, Swiss America Chairman.
"I expect gold prices to rise to at least $1,550/oz. by the second quarter of 2010," said Mr. Smith to Fox Business. Last February Mr. Smith correctly forecasted gold prices would hit $1,200/oz. in 2009 to CNBC.
Why is Mr. Smith so bullish on gold?
In September 2008 a global credit meltdown "forced" the Federal Reserve to flood the markets with liquidity, tripling the money supply. In reaction gold prices ran from $750/oz. on 9/08 to $1,215/oz. on 12/09 (a 63% increase) during a period of "tame" inflation! But that period is now over. Inflation is now heating up, with wholesale prices jumping 1.8% last month!
The good news: It's still not too late, but we suggest learning before you earn.
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