Gold Could Spike By $500 When This One Event Happens
Patience could wind up paying off for gold investors, even if the precious metal's price doesn't make sense at current levels.
A lot of gold bugs like myself still think that the precious metal is undervalued here at around $1820/oz., not only based on the Fed’s ridiculous track record of easy money over the last 15 years, but also due to the new burgeoning bifurcation of the global economy that looks to be taking place with Russia – and potentially China - looking to back their respective currencies with gold.
For many of us, this means that despite the fact that the Fed is hawkish, we still think gold is undervalued. I continue to believe that gold and silver miners represent some of the best and most undervalued equities in a market that is swiftly on its way to redirecting its attention to actual cash flow and dividends, instead of revenue growth and bombastic claims.
And what we’re seeing now in the gold market is a pullback based on the Fed posturing that it is going to continue to raise rates. Even with this “pullback”, gold is resting at levels that formerly used to be its ceiling.