Gold Warnings for Precious Metals Bulls and Bears
Commodities / Gold and Silver 2013 May 25, 2013 - 02:54 AM GMTBy: EWI
Dear Trader,
Volatile price action is a surprise to most investors most of the time.
That's definitely true of precious metals in the past 30 days. But, the real story is far bigger than just one month. In fact, gold and silver have seen declines of more than 30% and 50%, respectively, since 2011. Now that's news!
If you invest in precious metals, you owe it to yourself to read this brand-new report, Bob Prechter's Big 5 Gold Warnings for Bulls and Bears, from Elliott Wave International.
Inside the new report, you'll learn the truth about:
1) Central Bank Buying
2) Fed Inflating
3) The "Crisis Hedge" Argument
4) The "Gold is Cheap" Argument
5) The Conviction that Post-Peak Lows were Support
Exclusive Excerpt:
4) The “Gold Is Cheap” Argument
Gold bulls have been saying that gold must be priced far higher if it is to serve as the world’s money. But the September 2011 issue of EWT made a case that gold at $1921.50 was expensive:
Those who argue that gold is still cheap might want to consider [Figure 5], which shows that since 1913, when the Fed was created, gold has achieved four times the gain of the Consumer Price Index. To match the gain in the CPI, gold would have to fall below $500/oz. Granted, the CPI is a manipulated index, so it might understate the true gain in consumer prices. But there is still a notable disparity.
When the CPI starts falling, gold will have to drop even further to narrow this discrepancy.
Continue reading in the FREE Report ...
Thank you for reading,
P.S. If you follow the link above, you'll see a stunning chart of some of EWI's gold and silver forecasts over the past three years. When a market's wave patterns are clear, as they are now in gold and silver, it is a remarkable sight. See the chart now.
About the Publisher, Elliott Wave InternationalFounded in 1979 by Robert R. Prechter Jr., Elliott Wave International (EWI) is the world's largest market forecasting firm. Its staff of full-time analysts provides 24-hour-a-day market analysis to institutional and private investors around the world.
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