Financial News
Neil Mahony of My Gold Inc. Optimistic Gold Prices Finally Have Hit Bottom
By:
PRLog
August 01, 2013 at 09:11 AM EDT
With the lowest gold and silver prices in 2.5 years, the question on every investors mind, is when will the bottom be hit. Neil Mahony of Swiss Metal Assets is optimistic gold is at the start of a new bull run.
PRLog - Aug 01, 2013 - PANAMA CITY, Panama -- The rapidly declining prices of Gold and Silver have had investors asking when they are finally going to hit bottom. While no one can guarantee prices won't drop again, Neil Mahony, sales director of My Gold Inc., Panama (http://www.mygoldinc.com) believes recent jumps to $1333.20 on July 26th indicate prices have finally reached bottom, and he’s looking forward to a long term bull market.
2013 has seen rapid price declines in the precious metals market. On June 28th, gold hit a 2.5 year low of $1200 per oz. Silver's 52 week low was $18.53, down from a 52 week high of $35.04. Precious metals values have been dropping quickly since September.
According to Mr. Mahony, these drops have been based on manipulation and emotion, not reality, "While watching the market, we have seen these giant price dips that seem to defy logic. On one hand, prices are dropping on a daily basis. On the other, we see shortages everywhere, and investors are having difficulty securing the precious metals products they want."
At the same time as investors were dumping Comex gold shares at lightning speeds, causing prices to plummet, physical gold purchases were accelerating. Silver faced severe shortages as many large suppliers put customers on waiting lists for bullion and coins. Large investors, and even countries like Russia, have been buying and stockpiling physical gold in record numbers. In India, every attempt possible has been made to slow gold purchases.
What was happening in the markets wasn't matching what was actually happening in the field.
Gold bugs saw low prices as a perfect buying opportunity. But many investors held back, wondering how low prices will go. Goldman Saks estimates put the bottom around $1000 / oz. Other analysts had outlooks even lower.
However, many analysts who were bearish on gold have finally turned around.
A number of reasons have been cited pointing to finally hitting bottom.
· On Friday, July 19th, a record was set for gold options at 1,797,679 contracts. This record was exceeded on Monday July 22nd, with 1,808,693 option contracts in play. Both these indicate skyrocketing interest in the yellow metal.
· South Korea announced plans to open a new gold exchange in the first quarter of 2014 to combat the underground gold market springing up due to the demand for gold.
· Even though Ben Bernanke whispered he may reduce the 85 million dollar per month Quantitative Easing program if the economy continued to improve. He also said it would increase if the economy got worse. Fewer investors believe reports the economy is improving. Even being optimistic, they know some bond buying and low interest rates will be around for years, or even decades.
Neil Mahony sees gold primarily as an asset protection tool and vehicle to protect against inflation. However, by purchasing at the right time, like at the start of a bull run, excellent profits can be made.
Mr. Mahony remarked "While there will always be day traders who make and lose money playing the Comex market, we advocate a long term approach." He goes on to comment "As with any investment, your best returns are when you buy low and sell high. Since it looks like prices have finally hit bottom, and are on their way up, this is an excellent time to buy."
My Gold Inc. publishes a monthly newsletter and ongoing email tips through their free Offshore Gold, Silver and Precious Metals Club. In addition to information on purchasing and storing precious metals in a safe, secure offshore environment, club members enjoy discounts on a wide range of Gold, Silver, Platinum and other Precious metals products.
For more information on free membership, visit http://www.mygoldinc.com. To schedule an interview, or for more information email neil@mygoldinc.com or call 1-877-228-2034.
Read Full Story - Neil Mahony of My Gold Inc. Optimistic Gold Prices Finally Have Hit Bottom | More news from this source
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PRLog - Aug 01, 2013 - PANAMA CITY, Panama -- The rapidly declining prices of Gold and Silver have had investors asking when they are finally going to hit bottom. While no one can guarantee prices won't drop again, Neil Mahony, sales director of My Gold Inc., Panama (http://www.mygoldinc.com) believes recent jumps to $1333.20 on July 26th indicate prices have finally reached bottom, and he’s looking forward to a long term bull market.
2013 has seen rapid price declines in the precious metals market. On June 28th, gold hit a 2.5 year low of $1200 per oz. Silver's 52 week low was $18.53, down from a 52 week high of $35.04. Precious metals values have been dropping quickly since September.
According to Mr. Mahony, these drops have been based on manipulation and emotion, not reality, "While watching the market, we have seen these giant price dips that seem to defy logic. On one hand, prices are dropping on a daily basis. On the other, we see shortages everywhere, and investors are having difficulty securing the precious metals products they want."
At the same time as investors were dumping Comex gold shares at lightning speeds, causing prices to plummet, physical gold purchases were accelerating. Silver faced severe shortages as many large suppliers put customers on waiting lists for bullion and coins. Large investors, and even countries like Russia, have been buying and stockpiling physical gold in record numbers. In India, every attempt possible has been made to slow gold purchases.
What was happening in the markets wasn't matching what was actually happening in the field.
Gold bugs saw low prices as a perfect buying opportunity. But many investors held back, wondering how low prices will go. Goldman Saks estimates put the bottom around $1000 / oz. Other analysts had outlooks even lower.
However, many analysts who were bearish on gold have finally turned around.
A number of reasons have been cited pointing to finally hitting bottom.
· On Friday, July 19th, a record was set for gold options at 1,797,679 contracts. This record was exceeded on Monday July 22nd, with 1,808,693 option contracts in play. Both these indicate skyrocketing interest in the yellow metal.
· South Korea announced plans to open a new gold exchange in the first quarter of 2014 to combat the underground gold market springing up due to the demand for gold.
· Even though Ben Bernanke whispered he may reduce the 85 million dollar per month Quantitative Easing program if the economy continued to improve. He also said it would increase if the economy got worse. Fewer investors believe reports the economy is improving. Even being optimistic, they know some bond buying and low interest rates will be around for years, or even decades.
Neil Mahony sees gold primarily as an asset protection tool and vehicle to protect against inflation. However, by purchasing at the right time, like at the start of a bull run, excellent profits can be made.
Mr. Mahony remarked "While there will always be day traders who make and lose money playing the Comex market, we advocate a long term approach." He goes on to comment "As with any investment, your best returns are when you buy low and sell high. Since it looks like prices have finally hit bottom, and are on their way up, this is an excellent time to buy."
My Gold Inc. publishes a monthly newsletter and ongoing email tips through their free Offshore Gold, Silver and Precious Metals Club. In addition to information on purchasing and storing precious metals in a safe, secure offshore environment, club members enjoy discounts on a wide range of Gold, Silver, Platinum and other Precious metals products.
For more information on free membership, visit http://www.mygoldinc.com. To schedule an interview, or for more information email neil@mygoldinc.com or call 1-877-228-2034.
Read Full Story - Neil Mahony of My Gold Inc. Optimistic Gold Prices Finally Have Hit Bottom | More news from this source
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