20 April 2009

Banker X on Gold and Silver ~ The Swiss blew it, don't you!

Banker X: I think, given the nature of the business cycle, we'll see gold put in a top over US$3,000 and silver over US$150 at least. We may not see these tops for several years, or even a half-decade or more. It depends on how much money the Western central banks are willing to throw at the economy and the nature and extent of the resultant price inflation. If we see a price hyperinflation, and we may see one, then money metals prices could rise even higher than I've predicted. Thus, the current epoch does not spell an end for Swiss banking but a challenging opportunity.

Daily Bell: Obviously, you're recommending that people continue to buy and hold gold and silver, in its physical form anyway.

Banker X: Toward the top of one of these extended metals bull-markets, you see paper products linked to metals begin to accumulate value aggressively. ETFs, futures, options and other paper products all have their place. Mining stocks and junior mining stocks especially generate outstanding values late in the cycle. I happen to believe that advances in technology will drive the junior mining industry much higher than most people think currently. Fortunes were made in the 1970s in these stocks, and as some of the newer and greener mining technology comes on-stream, you'll likely see an explosion of newly mined metal and a resultant explosion in both price and demand.


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