Gold Is Up and USD Is Down

Gold futures will easily take out 2,000
It's a perfect storm of events that makes gold shine
Silver futures are now only halfway to their all-time
Gold bars

Gold bars

Print money. Print more money. Printing money devalues money. Devalue currency and gold appreciates. It’s that simple.

The price of gold futures continues to climb towards that lofty 2,000 level, as the U.S. dollar continues its slide lower. There is no reason for any trader or investor to believe that the Federal Reserve will change course this week or any time in the foreseeable future. This policy of “easy money” is far from over.

Gold futures will easily take out 2,000 an ounce at this rate. This chart shows how gold how climbed since late February through late July and just how close we are to that 2,000 level.

A close up of a map

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SOURCE: RJO Futures Pro

We can’t ignore the fact that Silver futures are now only halfway to their all-time high price while gold futures are posting new highs. Silver futures could potentially double from today’s levels. Platinum futures traded an all-time high of nearly 2,250. I can easily imagine platinum reaching $1,500 and silver taking out $30.00 just based off this move in gold.

We currently are experiencing the perfect storm of events that make gold shine — devaluing currency, economic uncertainty, and exploding debt. We’re in the early innings of this game. Don’t be afraid to buy high, but make sure that you’re working with a professional to help manage risk.

If you are interested in discussing the potential opportunities in the metals futures, please contact Frank directly at fcholly@rjofutures.com

About the Author

Frank Cholly has 35 years of commodity industry experience. He spent 20 years on the CBOT trading floor.