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Coming off two successive positive years, gold seems to be building toward something. Fizzling or dropping seems unlikely given 2017's surprise performance and the general state of global equity markets ? most of which seem to be overpriced, over-loved and over the top. 2017 will be recorded as a transition year for gold; 2018, in my opinion, will go down as the year gold reasserted itself as a primal force in the global financial marketplace.  The original article by Michael J. Kosares has been edited for length (…) and clarity ([ ]) by munKNEE.com to provide a fast & easy read. For all the latest - and best - financial articles sign up (in the top right corner) for your free bi-weekly Market Intelligence Report newsletter (see sample here) or visit our Facebook page.
I base that opinion not so much on the fundamentals or a technical reading of the charts ? or anything overly scientific for that matter, but rather on a gut feeling that comes with being in the gold business for 45 years. When all is said and done for 2018, after all the factors have been weighed and measured, I see sentiment ? a thing that cannot be measured or weighed ? emerging as the principal determinant for gold in 2018. 
Investment capital is forever rummaging around for an opportunity and smart money will always find what is undervalued. That in a nutshell is what gold has going for it as we enter the new year. In 2017, we saw the first signs of a sentiment-driven, smart money migration to gold ? a vanguard led by professional investors who govern institutional trading desks and manage multi-billion dollar hedge funds. In 2018, cash-flush private investors, absent the past year, will join with professional money in the pursuit of gold both in physical and paper forms. That will be good enough to generate a 20% improvement from December's closing number and put the price in the $1550-$1560 range. As for silver, I would not be surprised to see it trading over $22 at some point during the course of the new year ? the equivalent of a 30% price increase. It has a history of outperforming gold on both the upside and the downside, and this time around is unlikely to be an exception. Silver will also continue to benefit from its new role as a safe-haven asset and junior partner to gold in the asset preservation business. Related Articles From the munKNEE Vault: 1. Gold: 8-yr Cycle About To Start ? Next 5 Years Will Likely Be Good Ones For those who believe in cycles, the timing is perfect for a strong run up in gold. Here's why. 2. Place Your Bets: Gold Prices Will Break Out In 2018 ? Here's Why Gold just entered a new bull market but the price of gold has failed to garner any meaningful rally so, what gives? Why haven't gold prices rallied? Well, it's just a matter of time. 3. Gold:Silver Ratio Suggests Much Higher Future Price for Silver ? MUCH Higher! The majority of analysts maintain that gold will reach a parabolic peak price somewhere in excess of $5,000 per troy ounce in the next few years. Given the fact that the historical movement of silver is 90 ? 95% correlated with that of gold suggests that a much higher price for silver can also be anticipated. Couple that with the fact that silver is currently greatly undervalued relative to its average long-term historical relationship with gold and it is realistic to expect that silver will eventually escalate dramatically in price. How much? This article applies the historical gold:silver ratios to come up with a range of prices based on specific price levels for gold being reached. 4. Your Portfolio Should Have 2-9% Physical Gold In It ? Here's Why Because investment professionals are generally well informed, competing in an industry in which performance is king, one would assume any asset class deserving of rightful consideration would enjoy a fair hearing so it begs the question "Why Doesn't Gold Get The Respect It Deserves?" 5. Dow-to-Gold Ratio Says Gold Prices Could Be Headed Much Higher When trying to asses gold prices, it's critical for investors to pay close attention to the Dow-to-gold ratio. At its core, the ratio says how many ounces of gold it would take to buy one share of the Dow Jones Industrial Average. It's a powerful ratio when valuing gold prices and it isn't talked about much in the mainstream. 6. 10 Charts That Show Why Gold Is Undervalued Right Now Gold has historically shared a low-to-negative correlation with many traditional assets such as cash, Treasuries and stocks, both domestic and international. This makes it, I believe, an appealing diversifier in the event of a correction in the capital and forex markets. Need more reasons to add to your gold holdings? Below are 10 charts that show why the yellow metal is undervalued right now. 7. Silver Prices: How High Will They Go? $100? $300? $500? Silver prices have risen exponentially for the past 90 years as the dollar has been consistently devalued. Expect continued silver price rises. 8. These Sites Are the BEST Places to Buy Gold & Silver Online ? Here's Why Our review of the best places to buy gold online are dependent on what your goal with the gold is ? amassing physical bullion for financial security or to speculate on gold prices. Below are strategies and recommended dealers for each approach. The post Gold & Silver Price Predictions For 2018 appeared first on munKNEE dot.com. |
