Metals Minute 140: Buying Time

Grateful for the opportunity to pick up some additional gold this morning, as pressure from margin calls on Wall Street pushed paper gold prices to lower overnight. With gold trading near support levels, it is a bargain recognized worldwide and provides an excellent opportunity to purchase more inflation protection for the months and years ahead.

Money manager Stanley Druckenmiller, citing 45 years of experience on Wall Street, said this is the toughest environment he has seen to make market projections. He believes the stock market will likely see sideways movement for the next 10-11 years and sees similarities between conditions today and what they were between 1972-82ish.

While we have been talking about the similarities for precious metals, this is confirmation from an authoritative figure in the investing world on Wall Street. As you might recall, while stocks went sideways for many years, gold increased eightfold over the same period. We are entering a similar period now.

Famed precious metals investor Rick Rule recently said the FED is likely only raising interest rates high enough to provide room to lower them again soon, providing fuel for the metals rally.