The Gold Report
I thought this was worth sharing. It is nothing new to goldbugs, but caught my attention when I noticed it was Citigroup making the statement. We are buying gold stocks on dips such as occurred on Tuesday, and have also been doing very well with international ETFs such as ILF (Latin America) and FXI (China). These funds will continue to do well as long as the Fed keeps intervening to prop up the economy. However, we have set stops and will keep a close eye on the markets as a declining U.S. economy will drag down the foreign ETFs with it. In the meantime, this has proved to be a good diversification strategy and has provided some of the best returns in our entire portfolio...
Here are the key parts of the Citigroup report...Hello U.S. media? Anyone home?
In a fresh report, Citigroup said:
The central banks have been forced to choose between global recession or sacrificing control of gold, and have chosen the perceived lesser of two evils.
We believe that the policy resolution to the credit crunch will take the form of a massive, extended ‘Reflationary Rescue,’ in a new cycle of global credit creation, and competititive currency devaluations. This could take gold to $1,000 an ounce, or higher.
The report’s authors, John Hill and Graham Wark, said that the avalanche of central bank bullion sales earlier this year was “clearly timed to cap the gold price.”
Jason Hamlin, www.GoldStockBull.com
Notable Quotes
"LLG's stepout holes at Lac Guéret hit high-grade mineralization." (7/30/14) Mason Graphite Inc. - Daniel Greenspan, Macquarie Capital Markets More >
"PLG's Valley Porphyry shows potential for continued resource growth." (7/23/14) Pilot Gold Inc. - Jeff Killeen, CIBC World Markets More >
"GCM's new plant will allow it to grow production to 170 Koz gold by 2015." (7/30/14) Gran Colombia Gold Corp. - The Gold Report Interview with Ralph Aldis More >
"We've been impressed with how far DAN has moved the Lac à Paul project along." (7/29/14) Arianne Phosphate Inc. - The Mining Report Interview with John Chu More >
"Metallurgical testing on MKA's REE deposit in Malawi suggests that it should be fairly easy to process with relatively high rates of recovery." (7/28/14) Mkango Resources Ltd. - The Gold Report Interview with Paul Renken More >
Citigroup: Global Credit Creation Could Take Gold Over $1,000
Source: Jason Hamlin, Seeking Alpha (10/4/07)
Citigroup Report's authors John Hill and Graham Wark said: We believe that the policy resolution to the credit crunch will take the form of a massive, extended ‘Reflationary Rescue,’ in a new cycle of global credit creation, and competititive currency devaluations. This could take gold to $1,000 an ounce, or higher.
More Experts
"On ICG's Lamaque PEA, the base case yielded an IRR of 38%." (7/24/14) Integra Gold Corp. - Kevin MacKenzie, Salman Partners More >
"We like NAN's Maniitsoq nickel sulfide project in Greenland." (7/23/14) North American Nickel Inc. - The Gold Report Interview with Doug Loud More >
"CMM is now fully financed to advance the Castle Mountain project." (7/11/14) Castle Mountain Mining Co. Ltd. - Tara Hassan, Haywood Securities More >
"TMM's positive operations are leading to free cash flow." (7/10/14) Timmins Gold Corp. - Philip Ker, PI Financial More >
"PG's new resource shows Indicated ounces increased by 69%." (7/9/14) Premier Gold Mines Ltd. - Morning Coffee More >