Why Gold Will Rocket

Source:

Though its hard to imagine in the current price environment, both gold and silver are on the verge of a tremendous breakout to the upside, and if you canít get your hands on the physical bullion over the next 24 months, the producing companies will be next followed closely by well cashed up junior explorers with million ounce+ deposits in National Instrument 43-101 compliant categories.

...There has been a strong increase in gold lease rates in the last 90 days.

What does that tell us about the future price of gold?

Well, for one thing, it now costs as much to borrow gold as it does to borrow currency, which is a clear indication that the supply of gold for leasing is tightening while demand remains strong. Most central banks have ceased lending gold completely.

The bottom line is this: the massive repatriation of US Dollars as a result of de-leveraging globally and the unwinding of so many credit contingent deals is making the US Dollar look strong, while the gold manipulation cartel is exerting its utmost effort to keep the spot price of gold low through concentrated short positions on COMEX. The price of gold will emerge from this negative influence on the next leg down and the economy goes into a broader paralysis instead of being limited as it is now to real estate and financials. Most credible analysts are recommending a minimum 30% exposure to gold for institutional portfolios.

Though its hard to imagine in the current price environment, both gold and silver are on the verge of a tremendous breakout to the upside, and if you canít get your hands on the physical bullion over the next 24 months, the producing companies will be next followed closely by well cashed up junior explorers with million ounce+ deposits in National Instrument 43-101 compliant categories.

Ignore the negative press on gold, and recognize the current price weakness for what it is: the last time youíll see gold this cheap in a long time, and therefore a huge opportunity.

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