Gold Will Blast Above $1,000 Per Ounce Within 100 Days!And a Few Savvy Investors Will Profit Dramatically
By Ted Peroulakis
It’s just a matter of time before $1,000 becomes the floor for gold. Once gold breaks out above the $1,000 per ounce psychological resistance level, the sky is the limit. Gold could easily hit $1,200 or even $1,300 per ounce by year end. But you must act fast, because you may never see gold under $1,000 per ounce again. Investors that position themselves correctly today will have the opportunity to make 100% or more gains in the months ahead. Let me explain why…
Inflation and a lower valued dollar is just one of the reasons to buy gold. The U.S. government is on track to spend $1.8 trillion more this year than it brings in. America’s national debt is well over $11 trillion. This is the largest debt ever accumulated in the history of man.
It’s unlikely that America can continue to borrow $3.7 billion per day. Eventually, overseas investors will stop supporting our lavish spending habits and cut us off. The U.S. government will have no choice but to print up new currency to pay off this crushing debt load, setting up higher price inflation and a devalued dollar.
Gold is priced in dollars, therefore when the U.S. dollar goes down – gold prices go up. Gold is a hard-asset which historically holds its purchasing power and performs well in inflationary times.
China holds trillions in U.S. government debt and they are becoming alarmed with America’s out-of-control debt. A leading Chinese government official recently implied that China plans to dump U.S. Treasuries and buy gold.
China recently stated that since 2003 it had silently enlarged its holdings in gold from 600 to 1,054 metric tonnes. And, China could start buying a lot more gold in the future, which would boost demand and push gold prices well over $1,000 per ounce.
China currently holds foreign reserves of $2 trillion. If China decides to move just 25% of these reserves into gold it would need to buy more than 16,780 metric tonnes. That is more than 7 times the world’s annual gold production.
Just a small pickup in demand in gold could send prices soaring. Gold is already is short supply. According to the World Gold Council, the average annual global demand for gold was 3,674 metric tons from 2003-2007. And, annual new production of gold for that period of time was about 2,209 metric tons. That’s a 1,465 metric ton shortfall. This shortfall is made up by central bank sales and recycling, but the banks are running out of gold to sell… or are becoming more reluctant to get rid of it in a rising gold market.
It simple economics, when demand greatly exceeds supply, prices rise. And, gold supply is falling off, gold mine output last year dropped to a 12-year low, even though gold prices are higher. All, these events are setting up a huge bull market in gold.
Plus, gold has seasonal patterns in its price movement. Historically over the last 35-years of data, gold tends to run higher just after the summer months. Consequently, you want to position yourself to profit now.
And, finally gold looks very strong from a technical perspective. You will notice on the chart below that gold’s resistance is just under the $1,000 level. And, gold is in a confirmed uptrend (see up-trendline). These form an ascending continuation triangle chart pattern. The ascending triangle is seen as bullish formation that indicates accumulation. The up-trendline has a tendency to push gold above resistance. Once gold trades above resistance around $1,000 per ounce, then $1,000 will become support and gold can blast higher. You must act now! Profits are to be made in gold.
Bottom Line: Make sure you own gold. If you have a greater appetite for risk, you can buy stock options on superlative gold mining companies and target 100% gains or more in gold’s next leg up. But the options I’m looking at will not be this low priced for very long. You have to buy them now.
This gold miner has vast proven and probable gold ore reserves of 2,330 metric tonnes! As gold prices go up so does the value of the company’s gold reserves, which leads to an increase in earnings. The stock price could skyrocket with just a small rise in gold prices.
Best Wishes,
Ted Peroulakis, MBA
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