The publisher of a leading financial advisory service has claimed today (October 23rd) that now is a perfect time to be investing in gold.
James West, the head of the Midas Letter, which identifies opportunities and risks for investors, has outlined a number of reasons why buying gold is a sound long-term strategy.
In a detailed piece on seekingalpha.com, he explained that the current lull in gold prices is artificial and that the yellow metal is on the verge of a "tremendous breakout to the upside".
He told the website: "The massive repatriation of US dollars as a result of de-leveraging globally and the unwinding of so many credit contingent deals is making the US dollar look strong, while the gold manipulation cartel is exerting its utmost effort to keep the spot price of gold low through concentrated short positions on COMEX.
"The price of gold will emerge from this negative influence on the next leg down and the economy goes into a broader paralysis instead of being limited as it is now to real estate and financials."
Mr. West also points out that the fundamentals of supply and demand are still in place - not least because many central banks have stopped lending gold - and that this will become evident when the shackles are released.
As such, he has emphasised the fact that the slide in gold prices over the past two weeks represents an unrivalled chance to buy gold and ensure it forms around 30 per cent of any investment portfolio.
"Ignore the negative press on gold, and recognize the current price weakness for what it is: the last time you'll see gold this cheap in a long time, and therefore a huge opportunity," he added.
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