Subscribe FOR ALL ACCESS TO Nichols On gold
Follow Us on Twitter @NicholsOnGold.com

Brexit or Not: Gold to Soar, Eventually!

Whatever the outcome of this Thursday’s “Brexit” referendum on the United Kingdom’s future to stay in or to exit from the European Union, gold prices are set to move significantly higher during this year’s second half. Should the British reject devolution, gold prices might briefly move a little lower – even though, in the days running up to Thursday’s referendum, the financial markets may already have “priced in” a no-vote. By contrast, a majority vote to exit the European Union would likely create years of uncertainly over the terms of the prospective divorce agreement – and ...

Founding Fathers Liked Gold

To be sure, more than a few of our nation’s Founding Fathers owned gold and silver coins to preserve wealth at a time when paper currency wasn’t worth a Continental. Washington, Adams, Jefferson, Hamilton, Franklin, and Madison, each likely held gold coins as a form of saving and to preserve wealth during years of high inflation. And they all, each and every one of them, while distrustful of paper currency, believed there should be a role for gold in the young nation’s monetary and banking system. Alexander Hamilton, the nation’s first Secretary of the Treasury under President ...

Gold: More About the Outlook

You wouldn’t know it reading the Wall Street Journal, Bloomberg’s, or the other popular investment news sources . . . but thus far this year gold prices are up some 15-to-20 percent, making the yellow metal just about the top-performing investment asset class of 2016. We expect gold will continue to be one of the best – if not the best – investment-asset class in the months and years ahead. In fact, by this time next year, gold prices could challenge or even surpass their all-time high of $1,924 an ounce reached briefly in September 2011. And, as outlandish as it may seem, gold could ...

Gold — Pregnant with Possibility

  Despite gold’s recent sell off, I feel increasingly comfortable with our short-term (one-year) and our long-term (five-to-seven year) forecast of the future price of gold. Indeed, by this time next year, gold’s price could be challenging or even surpassing the yellow metal’s all-time high of $1,924 an ounce reached in September 2011. And, looking further out, by the end of the current decade, gold could double ($4,000) or even triple ($6,000) its previous all-time high. This bullish forecast does not depend upon some global economic crisis, financial-market meltdown, or ...

The Gold Bull Begins to Stir

These days I am feeling very bullish on the prospects for gold – and I would not be surprised to see prices double or possibly do even better over the next three-to-five years. Moreover, there is even some chance gold prices will break into record high territory (exceeding $1,924 an ounce) later this year or next. I expect that the U.S. and other major economies will perform poorly for several years to come with recession or near-recession business conditions forcing the Fed and other leading central banks to pursue reflationary monetary policies and low interest rates – a bullish ...

Wall Street Matters

Gold bulls have suffered years of disappointment, having seen their favorite metal’s price lose more than 40 percent from its all-time historic high of $1,924 an ounce in early September 2011. Last year alone the price of gold fell some 10 percent, leaving many investors, analysts, and financial-market pundits despondent about the prospects for gold in this New Year. What surprised us more than anything was the failure of extreme monetary stimulus from the U.S. Federal Reserve and other major central banks around the world to trigger and support a bull market in gold. Common sense ...

Gold in a Rising Interest Rate Environment

By the time you read this Commentary, chances are the Federal Reserve, America’s central bank, will have announced its decision to raise, if only by a slim quarter-percentage point, its key Fed funds interest rate. This is the rate banks charge one another in the interbank market for short-term funds – and it influences the whole spectrum of interest rates across the economy. A quarter-point may be seem little to speak of . . . but it does represent a significant shift in the direction of U.S. monetary policy, a shift with important implications for equities, bonds, real estate, gold, and ...

GOLD: RECOVERY INSIGHT

Despite increasingly strong supply/demand fundamentals, gold prices continue to tread water – more or less within a narrow $100 range – having hit overhead resistance a few weeks ago near $1175 and now testing support near $1075 an ounce. For the past year or two, financial-market expectations of U.S. Federal Reserve interest-rate policies – driven by the day-to-day flow of economic news and pronouncements by various Federal Reserve officials – have been the single-most important determinant of day-to-day fluctuations in the price of gold and the longer multi-year correction in the metal’s ...

Cold War Redux — Good for Gold

For the past year and longer, financial-market expectations of U.S. Federal Reserve interest-rate policies have been the single-most important determinant of day-to-day fluctuations in the price of gold. Indeed, the persistent widespread belief that the Fed would soon start weaning the markets off near-zero interest rates, however wrong, has weighed heavily on gold prices while fueling bubble-like conditions in many other asset markets – most notably equities, long-term bonds, the U.S. dollar, New York apartment prices, collectibles of all sorts, etc. All the while, gold has virtually ...

Interest Rates, Fed Policy, and the Price of Gold

Traders and investors around the world are placing bets on whether or not the U.S. Federal Reserve, America’s central bank, will soon raise short-term interest rates given the continuing ambiguity in U.S. and global economic indicators and continuing volatility in world financial markets. Some days there seems to be a consensus in the marketplace expecting the Fed will stand pat, leaving short-term interest rates unchanged for a while longer. Other days the consensus seems to expect the Fed will sooner or later nudge rates up a tad, possibly voting to do so as early as next week’s FOMC ...