Craig R. Smith
Gold prices broke through key resistance levels last week, rising to a five-week high near $675 an ounce, based on strong fundamentals and growing bullish sentiment.
But will this 6-year old bull market in commodities and gold continue? That is the question.
In their second annual private financial consultation, WND founder Joseph Farah covers the future prospects for the gold and coin markets with Swiss America CEO Craig Smith in a fast-moving, 30-minute interview.
Farah tosses out 10 timely questions to Mr. Smith, ranging from his 2007 price projection, to the reasons for gold’s meteoric rise, to the impact of the Internet on the gold and coin markets.
Smith says, “I often feel like a skipping CD when it come to gold, but given the mass media’s anti-gold bias, someone needs to tell Americans the truth!”
Experts such as “Hot Commodities” author Jim Rogers agree that today Americans are right in the middle of a commodity super-cycle and bull market in tangible assets, which should last another eight to 16 years.
Smith agrees, “Ever since 2001, both internal and external forces have combined to create a major long-term or ‘secular’ bull market in commodities, like gold and other tangible assets such as rare gold coins and fine art.”
As inflation worries continue to grip the financial markets in 2007, the value of dollar-denominated assets is further eroding. The worldwide shift toward owning gold represents a broad shunning of paper financial assets in favor of hard assets as a hedge against perceived currency risks.
Smith’s bullish outlook for gold is based on gold’s solid track record in recent years, which has impressed even the most bearish investors and Wall Street financial pundits.
So much so that Wall Street’s newest alternative to physical gold ownership, Electronic Traded Fund, which tracks the gold price, have more than doubled in the last year.
According to Smith, “During phase one of the gold rush (2001-2006) prices more than doubled, but that’s without widespread public participation. During phase two (2007-2014) I expect gold prices to double again, based on growing concerns such as rising interest rates and inflation, soaring debt and deficits, dollar declines and ongoing Mid-East turmoil.”
Smith has compressed his quarter century of experience in the gold and coin markets into this new educational resource that includes a free 20-page booklet and audio CD combo. Together, Farah and Smith cover the major forces driving gold, which types of gold are worth owning today and six steps investors should take before buying gold from anyone.
“The seven major forces driving gold coins today include; a falling U.S. dollar, rising real inflation, a commodity super-cycle, geopolitical risks, Wall Street’s ETFs, Internet growth and U.S. Mint promotion,” says Smith.
“A real U.S. dollar is defined as 1/20 ounce of gold, or about an ounce of silver. But starting in 1913, the U.S. Treasury and Federal Reserve began a slow process of redefining the “dollar” – from representing a weight measurement of pure precious metals – to representing public confidence in the U.S. government. The result: Today’s ‘dollar’ retains a mere 3 cents of its original buying power in relation to gold. Stated another way 1/20 of an ounce of gold (at $670/oz.) today will cost you $33.50 today, instead of just $1, as it did 75 years ago. Sad, but true,” Smith explains.