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Good to see and selling pressure for gold prices they tumbled to their lowest level in nearly three years now on track to post the worst quarter ever for gold.
I get this what our next guest joined us on the show two months ago we made a call on goal was pretty spot a -- take a listen.
-- there's probably going to go steady to lower -- hundred dollars I think sounds.
A little too far on the downside.
But I think we have another one to 200 dollars you're going south.
She's since that -- gold is down a 158.
Dollars James scored -- -- liberty trading group president is back to tell us where he sees gold heading.
Right now Jim could breath and -- call your right -- You say that gold is still too expensive where do you think it's going and argue shorting it now.
David we do think -- -- still has more -- downside left to it over the last 24 months so many investors ran into gold.
Understandably so 0% interest rates a quantitative easing.
As they hedge against inflation.
And and understandably so.
What a lot of people love may or may not understand is that that the key ingredients to inflation.
Are more more people chasing fewer and fewer goods and services and for that to happen you have to have job creation.
And a couple months ago when I was on with -- -- It was quite evident that the job for not being created an inflation really don't have a chance at that time.
James if gold is behaving like this.
On the mere talk of tapering the bond purchases what happens when they do taper when the Federal Reserve finally says time to just back up a bit to -- -- -- A further dramatic drop or will people start sniffing around for an opportunity gold.
It's interesting lists the US while our economy is not exactly robust it is the best in the land right now.
And interest rates are starting to -- up even before the tapering begins.
That is finally going to put a strong underpinning under the US dollar.
That is the second leg down in gold.
Gold biggest nemesis a strong US dollar we think that's going to be happening over the next six to twelve months and a gold -- -- -- inflation.
With higher US interest rates.
Gold probably has another 12150.
To go on the -- side.
By the way I don't know if your murder last guest Morgan Newton but he was actually saying about -- time to pick up some bargains -- goal but I did mention him.
He was pushing -- I said a lot of these gold mining companies.
Actually lose money at this price that is they were they were so pumped -- with the price of gold that they got into it.
-- -- very is digs that were only making money at 15100 and above for the price of goal.
They are losing money are some of them gonna go bankrupt if it.
Its interest in David I was listing your previous guest thing -- this certainly oversold right now is needed is -- for abounds.
But as far as a gold miners.
You know pulling -- out of the ground for 12100 dollars in some instances 1250.
I don't think there will be a great place to be right now on -- probably has another row leg down because of some of the ideas that we talked about.
I do think I'm gold miners.
The weakest ones that you know pulled the gold out of the ground for the most expensive price.
-- you have a very tough time the next twelve months I would not be getting into those.
Trades can we switch colors and go to silver silver's got slaughtered just the other day it would below twenty dollars an ounce and now we're eighteen and change.
What do you make of that opportunity.
We think that probably.
The next three to six months is going to be liquidation.
And if you're long silver -- thirty or 32 dollars.
This was trying to get painful the first like balance over goes from thirty to 25.
Many investors feel -- lucky me I can get in you know at this a great bargain price.
But now that we're under twenty we see probably investors liquidating some of their positions.
That could be a long drawn out weakness to the price and we could probably see us over trading down a 1415.
Later this year.
We have seen that level along -- listen to what this man says he was caught on the last time he was -- he's probably right this time as well James great to see James -- -- thank you.
Thanks for having well -- --
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