Did Mark Cuban and the Dow just prove Goldbugs right?
By GCRU Gold News on Thursday, February 18 2016, 07:45 - Permalink
"Fundamentally, I think we are at a key reflection point for precious metals. After 637 rate cuts and $12.3 trillion in global quantitative easing, I think the world is finding out that governments and world central banks have created a colossal Keynesian failure, which is now starting to unravel. Gold is a hedge against government, and the 16% rise in the bullion price this year is telling a story. Central banks have no more dry powder to reinflate the markets. I think the free market is now in an early stage of a lengthy process where all asset prices will revert to their mean and where fair market value will ultimately be restored."
Siegfried's vision for gold was upbeat. "I consider this as a cyclical bull market for precious metals, whereby gold will rise against most financial assets and all fiat currencies for most of the time. What we are going to see is a reversal of what has been the pattern over the last few years. As gold rises against fiat currencies, financial assets and most commodities, this will result in rising profit margins for the gold miners during a prolonged period of time. This is how the cycle has always worked. I think the next opportunity for gold stocks is in front of us and investors should start to position for it. I would still act cautiously, while keeping the long-term, emerging cyclical bull trend in mind. Do not to get distracted by short-term noise."