Gold still gets no love.
When gold reached $1,900 last fall, the consensus at the time was that the chance to get in had come and gone.
But today, with the precious metal dropping to $1,600, those same gold bashers feel that it’s no longer a good investment.
As expected, I completely disagree. And here’s why.
At the time of this writing – the current average price of gold bullion is up year over year and is level to the start of 2012.
And although some people may see this as a sign of a weakened market, I believe bullion prices have run into deep oversold territory in recent months and are slated for an imminent rebound.
You see, global economic factors are positioning the yellow metal for a bullish uptick before the end of the year.
Europe’s debt crisis is being tackled by one of the largest and most aggressive plans ever put together. Euros are being printed to bail out the PIGS nations. Leaders have also recently agreed to ease repayment rules for emergency loans to Spanish banks and relax conditions on help for Italy.
And of course, you know Ben Bernanke is just itching to fire up the printing presses Stateside as well.
These are bullish for gold. Then there are other positive signs that will push gold higher in the coming months too.
Demand remains high – especially in Asia. And supply faces the same problems as always – the long lead times for mines to come online and inelastic mining output to respond quickly to prices.
That’s why right now; I’m making the call that gold prices will rise in the weeks and months ahead.
As long as it remains the investment of choice as an alternative currency, we could see gold prices skyrocket past record highs set last year.
I believe this is an ideal time to take or increase a position in gold and gold-based investments.
Best to back up the truck today.
for Top Stock Millioniare