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Investment Experts Bullish on Gold Prices

Written By Brian Hicks

Posted September 5, 2013

You probably heard this old adage from your mom once or twice while you were growing up:

If someone told you to jump off a bridge, would you do it?

GOLD OUTLOOKThe answer should have been no. But you may have found, as you’ve gotten older, that this frame of reference doesn’t work for all “If someone told you…would you?” questions. For example:

If an investment expert told you to invest in gold, would you do it?

For this, the answer may be an immediate yes. It’s true; investment experts aren’t always right. However, they’ve been right enough times for them to make a substantial return on their investments – especially in gold.

Now, three investment experts are telling investors like you to set their eyes on the gold market. It’s low and it’s going to rise, so it’s time to jump.

Peter Schiff – Euro Pacific Capital CEO

Schiff forecasts that a dollar crisis in on the horizon, as he told CNBC, and there may be a bond market crash along with it.

As the debt builds, the United States will print more money to take care of it. Sounds easy, doesn’t it? If there’s not enough money, just print more. After all, the Fed’s been doing this for a while now.

However, when you have too much money, it becomes worthless. No one wants to see the value of the dollar decrease, especially investors. This is why Schiff says it’s time to put your money in gold. Gold’s value will hold while the dollar falls.

Jim Rogers – Rogers Holdings CEO & Millionaire Investor

Rogers is usually bullish on commodities. He thinks gold prices are going to rise, especially with a war likely to occur with Syria.

He told Reuters:

I own oil, I own gold, I own things like that if there is a going to be a war…they’re [going to] go much, much higher…Stocks are [going to] go down…commodities are [going to] go up.

Whenever there is a war, Rogers says food prices, energy, copper, and lead prices go up. It’s history that investors need to look at and apply when deciding what to do with their money in light of the Syria crisis and a possible U.S. military intervention.

Marc Faber – Doctor Doom

Faber shares Schiff’s concerns about the United States printing more money to deal with the debt the nation is taking on. However, he believes this is not confined to the U.S. – it is going to happen with central banks around the globe, and this will end up making gold prices soar.

Faber believes gold has seen its lowest point of $1,200. From this point, he projects prices will reach at least $1,921. But there’s no way to know if that’s going to be next year or in five years.

Investing in Gold

With all this information from the experts, it’s likely you’re wondering when you should get into it. According to Juan Carlos Artigas, World Gold Council Global Head of Investment Research, gold has dropped 37% since 2011, which is a huge pullback. Buying gold now means buying it at a low price, which is exactly what you should do when getting into the gold market. The theory behind this is that prices are low, and it’s only a matter of time before they will start to rise.

Demand for gold is the other indicator to invest. The China Gold Association reports that there should be an increase in demand by 30% (1,000 tons). That’s just in China, so you can just imagine what that means for the rest of the world. Demand is up, and supply isn’t meeting it, which is what makes prices go up.

Faber recommends that investors need to purchase physical gold to get the best return on the gold market. Bullion bars are the best way to invest in physical gold. You can get them in 1 troy ounce, 10 troy ounces, and 32.15 troy ounces. You can go for the big ones, too – the 100-ounce or 400-ounce bars.

Artigas recommends avoiding miners and recycled gold for investing. He projects that they will reduce their supply because of low gold prices. People are just not selling jewelry and coins like they used to, so these aren’t good investments right now.

The time is now to invest in gold. Experts are saying gold will rise, and with prices so low right now, it’s an excellent time to buy. Buying physical gold is better than other options, as it will produce the biggest return due to the demand and supply ratio. If you’re seeking a safe haven investment against a possible war and a decreasing dollar, gold is it.


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