4 Reasons Why Gold and Silver Make More Sense Than Ever

“If gold doesn’t make sense now, then it never made sense to begin with. Every single catalyst that gold rallied on is still in tact, only on steroids.” – Adem Tahiri

Dear Reader,

You read our Market Updates each week to get the latest news and insights about protecting your savings with physical gold and silver. Presumably you’re interested in creating a Precious Metals IRA or taking physical delivery – if you haven’t started to already – because you know how gold and silver can uniquely safeguard from inflation, stock market instability and geopolitical instability.

This could be your last best opportunity to get started.

By now you probably know that gold and silver dropped quite a bit last week. Despite that, every reason to protect your savings with physical precious metals still stands. But now you can get them at their lowest levels in over two years.

If you liked gold and silver two weeks ago, you have to love them at today’s prices.

Here’s why, in four simple points:

1. Drop in price due to paper selloff

There are a number of theories for what triggered last week’s selloff. Some believe it was orchestrated by the Fed, others say it was central banks around the world. We’ve also seen fingers pointed at hedge funds and institutional traders, and even the general speculative trader.

What no one disputes is that the selloff was solely of “paper” gold. During the two-day decline, 150 million shares of SPDR Gold Trust ETF were sold. Gold mining stocks plunged. And as overleveraged buyers of gold futures saw prices weaken, they panicked and ran for the hills.

Now we find gold and silver at their current levels – brought down entirely by a paper market.

2. Unprecedented global frenzy for physical precious metals

“After the most-massive (paper) liquidation in the history of precious metals markets; we don’t see massive stacks of unwanted gold, only massive stacks of unwanted paper…. Paper-gold holders have been swapping that paper for real metal.” – Jeff Nielson

With prices at their lowest levels in over two years, demand for physical gold and silver is spiking. At the Birch Gold offices, volume is higher than it has ever been. Already in April, the U.S. Mint has sold over 167,500 ounces of American Eagle gold coins – that’s more than the full previous two months combined. And reports around the world are just as staggering. Consider the frenzy being reported from international banks, or in Australia, Japan, China, Singapore, India… has the point been made yet?!

3. The fundamentals haven’t changed

Consider the following:

The Fed is still printing $85 billion a month
Currency wars are still raging around the world
Every major government is running a deficit
Interest rates remain near zero
Insider selling of stocks is rampant
Jobs reports give little evidence of economic recovery

We’ve been beating the drum on all of these forever now, and despite gold and silver’s drop last week, nothing has changed. The outlook for the U.S. Dollar, for the economy, for the stock market… there’s little reason for optimism.

4. Recovery may happen just as fast

Gold clearly in “buy signal”

Couple the global frenzy with the unchanging fundamentals, and it’s hard to deny that gold and silver are primed for a quick recovery.

“This is a buy opportunity. The last time gold and silver pulled back like this (fall 2008) it took off to $1,800 and $49 per ounce. Once the manipulators are done, look for it to skyrocket again.” – Bob Livingston

“My feeling is that we are going to see a sharp recovery… a V-shaped bounce rather than a U-shaped bounce. For people who have put some cash aside you are looking at opportunities being served to you on a golden platter.” – Pierre Lassonde