THE BULL MARKET in Gold Prices is "full fledged" and should be both "respected and bought" says a leading investment strategist today.
"The United States turned 234 years old yesterday," says David Rosenberg of Gluskin Sheff – the US$5.3 billion Canadian wealth management group – "and yet over half of the nation's money supply was created since Helicopter Ben [Bernanke] took over the flight controls four years ago.
"No wonder the Gold Price is in a full fledged bull market."
Citing research that shows a 12% drop in annual mining output over the past decade, Rosenberg – who was previously chief North American economist at investment bank Merrill Lynch in New York – says the marginal cost of unearthing one ounce of gold has meantime "more than doubled".
"The marginal cost of pressing on Dr. Bernanke's printing machine is basically zero," he adds in contrast, before forecasting – and also advocating – "a re-expansion" of Quantitative Easing by the Federal Reserve.
Noting last week's 5% drop in Gold Prices, "Gold has corrected to the 50-day moving average," Rosenberg adds, "which in the past has been a terrific entry point." He believes that gold's upward channel "is to be respected and to be bought."
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