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Wednesday, February 1, 2012

Gold prices are set to explode in 2012 - Peter Schiff

Gold prices are set to explode in 2012 Peter Schiff, CEO of Euro Pacific Capital, says the stars are aligned for a gold rally.Schiff says he's "more optimistic about gold" this year than he's ever been and says all the shorts and newly turned gold bears will miss the imminent rally. Moreover, gold mining stocks (such as Newmont Mining and Barrick Gold Corp.) will finally play catch-up to gold, he says, meaning big returns for investors who have stayed with these stocks as they significantly lagged the precious metal."People who are using Treasuries as a safe haven are making a grave mistake if they don't get rid of their treasuries soon," he says.One of the biggest investment stories in 2011, gold ended the year up 10% - a sharp contrast compared to how U.S. stocks closed in 2011 - but a big drop-off from gold's September high of $1,920.30 an ounce. Gold had one of its worst fourth quarters in decades, losing 10% in the month of December alone.Gold has no price. Prices are a matter of currency values. Gold isn't volatile. The currency is.The CME has increased margin requirements twice for Silver and 6% for Gold long contracts to about 11% of the contract. Yet naked short positions need to have no physical holdings of Gold. This can only force the price of precious metals down . If you want to be long on Gold contracts you have to hold more dollars, if you want to be short on Gold you dont need any Gold at all to do so. Looks like the CME has taken over Precious metals price manipulation from J.P.Morgans & HSBC's prop traders. If the naked shorts of Gold & silver were forced to hold just a 6% inventory of the physical metal to back their trades there wouldn't be enough physical supply & the whole system would collapse, yet the CME insists overnight that holders of long contracts in Gold have to hold an extra 6% magin of worthless paper (money) to cover their long contracts. The gold price drops $80 in a week. The chicago mercantile exchange is the new J.P.Morgan precious metals manipulators. Buy only physical metals.

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