The quantitative easing measures by the Federal Reserve had previously resulted in the exchange traded funds for gold, SPDR Gold Shares, and silver, iShares Silver Trust, soaring in value. Since Quantitative Easing III was announced by Federal Reserve Chairman Ben Bernanke in September 2012, gold and silver has fallen in value. But the very factors that drove down the price of the exchange traded funds, makes gold and silver producers such as Barrick Gold (NYSE: ABX), Yamana (NYSE: AUY), Wishbone Gold PLC (OTC: WISHY) bullish investments for the future.
In a recent interview, Richard Pouldon, Executive Chairman of Wishbone Gold PLC, stated that investors in Asia were moving away from the buying of shares of exchange traded funds and towards directly purchasing the precious metals.
Those buyers range from the central banks of those countries to the billions of consumers in each. As India and China are the two largest consumers of gold in the world, that is very positive news for producers that serve those markets.
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Wishbone Gold PLC has extensive holdings in the Queensland Territory of Australia.
Barrick Gold, the world’s second largest gold company, and Yamana Gold, also have assets well placed to feed rising Asian demand. Recent analyst recommendations have touted all three firms: Beaufort Securities with Wishbone Gold PLC, an article in Barron’s for Barrick Gold, and MSN.Money financial columnist Jim Jubak for Yamana Gold.
Pouldon also pointed out that inflation is inevitable due to the monetary policies of global central bankers.
That point too was made by former Secretary of State and Secretary of the Treasury George Shutlz in an interview with The Wall Street Journal in which he stated,
The Fed doesn’t have an unlimited capacity because when it buys the debt what it’s doing is monetizing the debt. Sooner or later that has got to get out into the economy. Can’t be held forever. And when it does in that kind of volume—as Milton Friedman taught us, inflation is a monetary phenomenon—it’s gonna be hard to control.
When that happens, the price of gold and silver will rise due to the decline in value of paper money. Stocks such as Wisbhone Gold PLC, Yamana Gold, and Barrick Gold will also rise in value. That outlook results in precious metals being invaluable for a retirement account.
It is important that you get your hands on gold while you can before countries like India and China buy it all up. Learn how to with a gold IRA