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INFLATION EXPECTATIONS AND THE PRICE OF GOLD

From a long-term perspective, gold is a bargain at recent prices in the $900 to $930 an ounce . . . and will remain so even as it begins to move into a higher trading range. Recent gold-market developments and technical price action -- along with broader economic and financial-market developments -- suggest gold is bracing for a resumption of its long march upward and a retest of its historic high in the months ahead. First and foremost, the bullish outlook for gold rests on the increasing likelihood of accelerating U.S. inflation in the years to come -- and an associated unprecedented ...

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FED EASING AND GOLD PROSPECTS

This week's news from the U.S. Federal Reserve promising massive quantitative easing in the months ahead greatly increases our confidence in the long-term bullish outlook for gold and silver.  Since the first recorded use of currency by King Croesus some 2,500 years ago, there has NEVER been a rapid increase in the supply of money that has not, within a few years, been followed by an acceleration of inflation.  Why should the current experience be any different!! Our forecast that gold will reach a cyclical high over $2500 and silver will exceed $50 an ounce in the next few years looks ...

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GOLD: STILL VULNERABLE

Gold's tumble in recent days, now about 9.5 percent from its late-February high just briefly over $1000 an ounce, is no surprise to readers of NicholsOnGold.com.  Although we remain bullish for the long-term and foresee more than a doubling of the gold price in the next few years, the immediate picture is less rosy . . . and the yellow metal remains vulnerable to further short-term selling. A number of factors have contributed to gold's decline in the past week and may remain influential in the weeks ahead: •    First and foremost, the market has had to absorb an absolutely fantastic ...

NO SURPRISES

Gold's retreat in recent days from its brief flirtation last week over $1000 an ounce was no surprise.  We warned in recent posts that the surge in secondary supply, particularly from Asian and Mideastern markets, and the worldwide collapse of fabrication demand left the price vulnerable -- and an easing of investor interest could bring a sizable correction in the yellow metal's price. Moreover, when everyone seems to be jumping on the gold train, nary a bear is to be seen, bulls are uniformly revising upward their price forecasts, and the financial press suddenly gets all hot and bothered, ...

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The World Economic Crisis and the Outlook for Gold

The World Economic Crisis and the Outlook for Gold Speech to the 3rd Annual China Gold & Precious Metals Summit Shanghai, China Thank you Mr. Chairman for that flattering introduction and thank you to the conference organizers who have made it possible for us to exchange information and insights into the future of gold here in China and in the global marketplace. You should know that my presentation today will be posted on my website, NicholsOnGold.com, so you can easily check back in a few days, or a month, or a year – to review my analysis and my expectations for gold. A few ...

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GOLD — Nearing a Turning Point

Despite gold's latest weakness and the possibility of further breakdown, I believe we are nearing a turning point in the tenor and direction of the market.  Before long, gold will begin a new and sustainable upward march. Until then, with the yellow metal in the $700 to $730 range - and certainly at lower price levels - price-sensitive demand from key Asian and Middle Eastern markets should stabilize the market. With $1000 gold very likely in the next year - and still higher prices beyond - the risk/reward ratio is very much skewed to the plus side. Commodity Disinvestment Running Its ...

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