Written by Julian D. W. Phillips: Gold/Silver Forecaster
Monday, 04 November 2013 06:57
In this part and the next we will look at the prospects for the gold price for the rest of this year and beyond. These next parts are the critical parts. What we will try to do is to synthesize the factors playing on the gold market today and have done in 2013.
The figures put out by the World gold Council are accurate insofar as they project past figures to reach year-end figures. But Sprott’s conclusion, we feel, will come true once current restraints on gold demand are removed; however, the WGC/GFMS figures do not paint the day-to-day factors which dictate the gold price today and on a day-to-day basis, nor I believe are they intended to do so. They do paint the fundamental picture, which confirms the fundamental factors that will influence the future. We have great respect for the WGC/GFMS as well as for Mr. Sprott; however we have to synthesize these numbers and influences upon them carefully to see the impact of what is now building up.
The Sea on the Shore
The gold market is split up into three types of factors that take us back to our analogy of the sea-shore. The three elements of the sea at the seashore are the waves, the tides and the overriding currents. ...