Profit Confidential Predicts Higher Gold Prices from Central Banks and Slow Global Economy
Profit Confidential predicts higher gold prices due to central banks and the slow global economy.
New York, NY, United States – April 24, 2015 /MarketersMedia/ —
Profit Confidential (www.ProfitConfidential.com), an e-letter published by Lombardi Publishing Corporation, a 29-year-old consumer publisher that has served over one million customers in 141 countries, is predicting higher gold prices thanks to central banks and the slow global economy.
“With gold prices down roughly 30% since the beginning of 2013 and basically flat year-to-date, few are predicting higher gold prices in 2015. But the fact of the matter is, because of a number of different factors, 2015 could be the year when we see the beginning of another bull run in gold prices,” says financial analyst Moe Zulfiqar.
Zulfiqar explains that there are many factors at play when it comes to valuing gold, but two of the most critical ones are: 1) central banks and their monetary policies; and 2) the state of the global economy.
Central banks around the world are involved in unprecedented monetary policies. The Federal Reserve just ended its $3.5-trillion quantitative easing policy in late 2014. Over 20 major central banks around the world, including China, India, and the ECB, have artificially lowered their interests and/or are outright printing money. If these global monetary policies continue, the economic problems, including capital misallocation in bond markets and stock markets across the board, are going to become even more troublesome.
“Despite money printing and near-zero interest rates, the global economy continues to show signs of severe stress. The eurozone remains in deep water, China is slowing down significantly, and the U.S. economy is showing signs of stress as well,” Zulfiqar adds. “Global trade is slowing. The Baltic Dry Index—which measures the rates for chartering giant ships that transport iron ore, coal, and grain, as an indicator of the state of the global economy—is trading at its lowest level since 1987.”
“When it comes to precious metals like gold, most investors only look at the short term. But it’s more important to think long-term. And right now, gold is an excellent long-term trade,” Zulfiqar concludes. “I believe gold mining companies are selling at a massive discount. Some of the biggest mining companies—with assets around the world, cash on hand, and massive reserves and resources in safe geopolitical areas—are selling for pennies on the dollar.”
For more information on Profit Confidential, visit www.ProfitConfidential.com. Founded in 1986, Lombardi Publishing Corporation, which has served over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more information on Lombardi Publishing Corporation, visit http://lombardipublishing.com/.
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Organization: Lombardi Publishing Corporation
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