Gold Price Down - Great Buying Opportunity!

As I write, gold is at USD$1572 an ounce and silver is at $28.13 an ounce and many are getting very jittery and selling their precious metals. This is normal, especially for those who have bought recently at around $1800 – 1900 an ounce. However, remember I have said all along that we were going to see massive volatility. This is to be expected, but fundamentals haven’t changed. Our global economic system is based wholly on debt and the value of fiat currencies is gradually eroding as QE continues and while banks are “too big to fail.”

The fact that prices have dropped so significantly is one of the main reasons I always tell people NOT to borrow money in order to buy gold and silver. This is where you can come unstuck. It’s much too risky and it’s going to get riskier as time goes on. I wouldn’t be surprised if gold went as low as $1300 an ounce and the lower it falls the higher it’s likely to bounce back in the future.

No one can tell exactly where the bottom is for this current dip, but I can see on the charts that this looks like a wonderful time to buy. The sensible people are buying while the sheeple are selling.

If you have cash in the bank and no precious metals at all, you are fully invested in the fiat currency system and you have all your eggs in one basket. This is a huge risk as you could lose an enormous amount of money or you might lose it all. In Lithuania right now, there are huge runs on the banks with people scrambling to get their money out. In Greece and Italy, depositors are withdrawing their money in droves from the banks. I would suggest that you have AT LEAST 10% of your cash in gold and silver (mainly gold), and you will at least know that you have insurance in case there is economic collapse and that 10% will be your saviour.

To quote the legendary Jim Sinclair,
“The most important thing is volatility. One thing this shows you, and it increases continually, is this is the wildest chop we’ve ever been in, in the history of trading gold, in terms of ups and downs. It means to me that gold is going to rise to prices even higher than I expected....” and Jim has been saying that gold will go into the $2000s and possibly even up to $4500 or more…

So what are you waiting for? This is a wonderful buying opportunity folks! Don’t be scared off, act as a contrarian, buy when others are thinking of selling.