Like a true contrarian, Gold Newsletter publisher Brien Lundin looks beyond the headlines to understand what is really moving precious metals prices. He has concluded that the mainstream media may have it all wrong.
Brien Lundin, founder of Jefferson Financial, producer of the New Orleans Investment Conference and Gold Newsletter, believes at least a small amount of the massive liquidity produced by loose monetary policy in Western economies will find its way into mining equities following a summer pullback in equity prices—but don't wait long.
Peter Schiff lays an iPod-sized bar valued at about $40,000 on the sun room floor of his Connecticut mansion, and calculates it would cost about $250,000 for each floor tile to pave the room with gold.
The global rally for gold underway since late June will soon translate to juniors, says Brien Lundin. With so many undervalued companies in safe North American jurisdictions, he sees no reason to add sovereign risk to a portfolio.
According to the calendar, it is still winter and gold markets still face some tough sledding, says Jay Taylor, host of the radio show "Turning Hard Times into Good Times." Big investors are leaving the market and small investors hesitate to reenter.
The yellow metal is increasingly valued as a reserve asset, which will tend to push the price up, independently of all other factors. Due to new regulations, you may also have to bid in the future alongside financial institutions, including several banks, to acquire it.
The fiscal cliff debate could take a while. In the meantime, our personal wealth is in jeopardy. And we've got precious little time to protect it. The good thing is that the markets have pushed gold and precious metals prices sideways instead of to the moon.