{"id":373277,"date":"2016-10-22T14:37:20","date_gmt":"2016-10-22T14:37:20","guid":{"rendered":"http:\/\/juniorminingnews.com\/?p=373277"},"modified":"2016-10-22T14:37:20","modified_gmt":"2016-10-22T14:37:20","slug":"former-goldman-insider-says-price-of-gold-could-double","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=373277","title":{"rendered":"Former Goldman Insider Says Price of Gold Could Double"},"content":{"rendered":"<h3><a href=\"http:\/\/www.caseyresearch.com\/go\/td3hj-2\/CSW\">Former Goldman Insider Says Price of Gold Could Double<\/a><a href=\"http:\/\/www.caseyresearch.com\/go\/td3hj-2\/CSW\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-288215 size-thumbnail\" src=\"http:\/\/juniorminingnews.com\/wp-content\/uploads\/2016\/05\/Justin-Spittler300x300-150x150.jpg\" alt=\"Justin-Spittler300x300\" width=\"150\" height=\"150\" data-id=\"288215\" srcset=\"https:\/\/juniorminingnews.com\/wp-content\/uploads\/2016\/05\/Justin-Spittler300x300-150x150.jpg 150w, https:\/\/juniorminingnews.com\/wp-content\/uploads\/2016\/05\/Justin-Spittler300x300.jpg 300w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><\/a><\/h3>\n<h3><span style=\"font-size: small;\">By Justin Spittler<\/span><\/h3>\n<p>The price of gold should be a lot higher\u2026<iframe loading=\"lazy\" src=\"http:\/\/trk.caseyresearch.com\/f\/?content_id=1708&amp;code=CSW&amp;editorial=former-goldman-insider-says-price-of-gold-could-double-1\" width=\"1\" height=\"1\" frameborder=\"0\"><\/iframe><\/p>\n<p>At least, that\u2019s what Raoul Pal thinks. Pal is one of the world\u2019s top \u201cbig-picture\u201d investors. He used\u00a0to work\u00a0at Goldman Sachs\u00a0and run a giant hedge fund, until he made so much money that he retired.<\/p>\n<p>Today, Pal writes <em>The Global Macro Investor<\/em>, a research letter read by some of the world\u2019s biggest money managers. Recently, Pal came out in defense of gold.<\/p>\n<p>You see, gold has cooled off after climbing 25% over the first six months of the year. It\u2019s down 8.5% since August. And it\u2019s coming off seven straight down days, its worst losing streak since 2013.<\/p>\n<p>Gold\u2019s recent selloff has many investors worried. But not Pal. He thinks investors could soon take shelter in gold\u2026which could <u>cause the price to double from current levels.<\/u><\/p>\n<p>Today, we\u2019ll explain why Pal is so bullish on gold. But let\u2019s first look at why gold has been struggling.<\/p>\n<p>\u2022\u00a0<strong>The U.S. dollar is soaring right now\u2026<\/strong><\/p>\n<p>The U.S. Dollar Index, which tracks the dollar\u2019s performance versus major currencies like the euro and Japanese yen, is up 5.7% since May. And that\u2019s been a major drag on the price of gold.<\/p>\n<p>Like most commodities, the dollar is priced in gold. This means gold gets \u201ccheaper\u201d when the dollar gets more expensive.<\/p>\n<p>There are a few reasons why the dollar has done well recently:<\/p>\n<ol>\n<li value=\"1\">There was a flight to safety after Brexit. This pushed many foreign investors into the U.S. dollar and U.S. assets, which a lot of investors still consider safe havens.<\/li>\n<li value=\"2\">The Federal Reserve is \u201cdoing less\u201d than other major central banks right now. It\u2019s not printing money like the European Central Bank and Bank of Japan. It\u2019s not cutting interest rates either.<\/li>\n<li value=\"3\">The Fed is also talking about raising interest rates. If the Fed does this, U.S. assets will \u201cpay\u201d even more than European and Japanese assets. And that\u2019s bullish for the U.S. dollar.<\/li>\n<\/ol>\n<p>\u2022\u00a0<strong>The dollar could head higher in the coming months\u2026<\/strong><\/p>\n<p>The chart below shows the performance of the U.S. dollar over the past two years. You can see the dollar recently broke out of a \u201cwedge\u201d pattern.<\/p>\n<p align=\"center\"><img decoding=\"async\" style=\"width: 100%; max-width: 550px;\" src=\"https:\/\/d1w116sruyx1mf.cloudfront.net\/ee-assets\/channels\/article_default\/the-us-dollar-just-broke-out.png\" \/><\/p>\n<p>This means the dollar will probably keep rising, at least in the short term.<\/p>\n<p>Now, most investors think this is a reason to avoid gold. But Pal is actually bullish on gold <em>and<\/em> the U.S. dollar right now.<\/p>\n<p>\u2022\u00a0<strong>Like us, Pal thinks the U.S. economy is headed for tough times\u2026<\/strong><\/p>\n<p><em>MarketWatch<\/em> reported last week:<\/p>\n<blockquote><p>Pal\u2019s core presumption \u2014 one he\u2019s held since 2014 \u2014 is bad news for the U.S.: <u>He is convinced the country is headed for recession within a year.<\/u> \u201cThe business cycle points to that,\u201d he said, \u201cand 100% of all two-term elections have had a recession within 12 months since 1910.\u201d<\/p><\/blockquote>\n<p>According to Investopedia, the business cycle is the \u201cfluctuation in economic activity that an economy experiences over a period of time.\u201d When the economy is growing, it\u2019s called an expansion or a recovery. When the economy is shrinking, it\u2019s called a recession.<\/p>\n<p>According to the government, the U.S. economy has been recovering since 2009. The current recovery is now more than seven years old, making it one of the longest recoveries in U.S. history. It\u2019s also been one of the weakest recoveries on record. The U.S. economy has grown just 2.1% over the last seven years. That\u2019s about half as fast as the economy\u2019s historical growth rate.<\/p>\n<p>\u2022\u00a0<strong>Pal isn\u2019t the only big-time investor worried about the U.S. economy\u2026<\/strong><\/p>\n<p><em>MarketWatch<\/em> explains:<\/p>\n<blockquote><p>Pal does have some prominent company: Savita Subramanian, Bank of America\u2019s head of equity strategy, recently predicted the same; Janus Capital\u2019s Bill Gross spoke of a lagging U.S. recovery in his September investment note; and bond investor Jeffrey Gundlach showed a chart during a recent webcast that revealed the start of a recession. And Wilbur Ross sees one coming in 18 months.<\/p><\/blockquote>\n<p>\u2022\u00a0<strong>A recession would almost certainly be bad for stocks and bonds\u2026<\/strong><\/p>\n<p>But it could cause the price of gold to surge. After all, gold is the ultimate safe-haven asset. Investors buy gold when they expect stocks or the economy to struggle.<\/p>\n<p>Of course, <em>Dispatch<\/em> readers know that the U.S. government will likely do whatever it takes to prevent a recession. It could \u201cprint\u201d more money or slash interest rates again.<\/p>\n<p>Pal says more easy money would be good for gold. <em>MarketWatch<\/em> reported:<\/p>\n<blockquote><p>Should his prediction come true, Pal says, gold prices could double. If central banks want to get active and combat a slowing economy, he says, they will try to stimulate the economy via printing money or more easing, all of which plays \u201cinto the hands of gold.\u201d<\/p><\/blockquote>\n<p>\u2022\u00a0<strong>The &#8220;smart money&#8221; has loaded up on gold\u2026<\/strong><\/p>\n<p>Stanley Druckenmiller, one of the greatest traders ever, recently put about $300 million of his own money into gold.<\/p>\n<p>George Soros, another legendary investor and Druckenmiller\u2019s former trading partner, also placed a huge bet on gold earlier this year when he invested $264 million in Barrick Gold (ABX), the world\u2019s largest gold miner.<\/p>\n<p>Jeffrey Gundlach, chief executive of DoubleLine Capital, has a lot invested in gold and gold stocks, too.<\/p>\n<p>According to Pal, \u201call the really serious thinkers are interested in gold.\u201d<\/p>\n<p>\u2022\u00a0<strong>Now could be the perfect time to buy gold\u2026<\/strong><\/p>\n<p>With the dollar rising, many investors aren\u2019t thinking about gold. Some have even thrown in the towel on gold.<\/p>\n<p>We think these people are making a big mistake. As we\u2019ve explained today, the strong dollar has been a drag on gold prices. But the dollar won\u2019t stay strong forever.<\/p>\n<p>You see, the U.S. dollar is merely the \u201cleast awful\u201d major currency to own right now. But when the U.S. economy runs into trouble again, the Fed will do what every other central bank does when this happens: flood the financial system with money. This will hurt the dollar and benefit gold.<\/p>\n<p>\u2022\u00a0<strong>Gold could skyrocket even if the U.S. economy can \u201cput off\u201d the inevitable recession\u2026<\/strong><\/p>\n<p>To understand why, <a href=\"http:\/\/www.caseyresearch.com\/go\/td37m-2\/CSW\" target=\"_blank\">watch this brand-new presentation<\/a>.<\/p>\n<p>As you\u2019ll see, a new \u201cgold law\u201d is set to take effect just two months from now. When it does, 1.6 billion people will have access to the global gold market for the first time in more than four decades.<\/p>\n<p>E.B. Tucker, editor of <em>The Casey Report<\/em>, says this could trigger a full-blown \u201cgold-buying frenzy.\u201d An estimated $3 TRILLION could flood a tiny corner of the gold market.<\/p>\n<p>Opportunities like this almost never happen. And yet, the mainstream media hasn\u2019t said a peep about this.<\/p>\n<p><a href=\"http:\/\/www.caseyresearch.com\/go\/td3sn-2\/CSW\" target=\"_blank\">You can learn more about this upcoming event by watching this newly released video<\/a>. We\u2019ll also tell you the exact date to circle on your calendar AND how to make the most money off this incredible opportunity. Hint: It has nothing to do with buying gold coins.<\/p>\n<p><a href=\"http:\/\/www.caseyresearch.com\/go\/td3vp-2\/CSW\" target=\"_blank\">Click here to learn more<\/a>.<\/p>\n<h3 align=\"center\"><strong>Chart of the Day<\/strong><\/h3>\n<p>Raoul Pal doesn\u2019t like U.S. stocks right now.<\/p>\n<p>Today\u2019s chart compares the Institute for Supply Management (ISM) Manufacturing\u00a0Index with the year-over-year performance of the S&amp;P 500. The ISM measures the health of the manufacturing industry. According to <em>MarketWatch<\/em>, it\u2019s one of Pal\u2019s most trusted economic indicators.<\/p>\n<p>You can see that the ISM closely tracks the performance of the S&amp;P 500. When it rises, U.S. stocks usually do, too. But that\u2019s not happening right now.<\/p>\n<p>Today, the S&amp;P 500 (blue line) is rising, while the ISM (red line) is falling. Pal says this is a very bad sign for the U.S. economy. <em>MarketWatch <\/em>reported:<\/p>\n<blockquote><p>\u201cIt peaked in 2011 and has been bouncing around 50 for a while now,\u201d he said. \u201cThe moment it starts to get to 47, 46, the odds of a full-on recession explode to 85%. We\u2019re very close now, getting to the point where the probability is very high.\u201d<\/p><\/blockquote>\n<p>It\u2019s not the only key economic indicator that\u2019s screaming recession, either:<\/p>\n<blockquote><p>\u201cThere\u2019s a difference between the narrative, which is what you\u2019re being told, versus the reality of the economic data,\u201d said Pal. \u201cIt\u2019s in no one\u2019s interest ahead of the election to say the U.S. economy is a mess \u2014 [that] world trade freight shipments, container shipments, retail sales, restaurant sales, factory orders, durable orders are all showing a recession.\u201d<\/p><\/blockquote>\n<p>If the flood of bad economic data continues, the Fed will almost certainly print more money or cut interest rates. And that could easily send gold prices through the roof.<\/p>\n<p align=\"center\"><img decoding=\"async\" style=\"width: 100%; max-width: 500px;\" src=\"https:\/\/d1w116sruyx1mf.cloudfront.net\/ee-assets\/channels\/article_default\/ism-vs-spx-yoy.png\" \/><\/p>\n<div id=\"xvMdV95u77zU\" style=\"clear: both;\">The article <a href=\"http:\/\/www.caseyresearch.com\/go\/td3yq-2\/CSW\" rel=\"permalink\">Former Goldman Insider Says Price of Gold Could Double<\/a> was originally published at <a href=\"http:\/\/www.caseyresearch.com\/go\/td2jr-2\/CSW\">caseyresearch.com<\/a>.<\/div>\n<div style=\"clear: both;\"><\/div>\n<div style=\"clear: both;\"><a href=\"http:\/\/CommonStockWarrants.com\/Members\/signup\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-354144 aligncenter\" src=\"http:\/\/juniorminingnews.com\/wp-content\/uploads\/2016\/09\/blackcsw2-01-1024x71.png\" alt=\"blackcsw2-01\" width=\"1024\" height=\"71\" data-id=\"354144\" srcset=\"https:\/\/juniorminingnews.com\/wp-content\/uploads\/2016\/09\/blackcsw2-01-1024x71.png 1024w, https:\/\/juniorminingnews.com\/wp-content\/uploads\/2016\/09\/blackcsw2-01-300x21.png 300w, https:\/\/juniorminingnews.com\/wp-content\/uploads\/2016\/09\/blackcsw2-01-768x53.png 768w, https:\/\/juniorminingnews.com\/wp-content\/uploads\/2016\/09\/blackcsw2-01-500x35.png 500w, https:\/\/juniorminingnews.com\/wp-content\/uploads\/2016\/09\/blackcsw2-01.png 1440w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Former Goldman Insider Says Price of Gold Could Double By Justin Spittler The price of gold should be a lot higher\u2026 At least, that\u2019s what Raoul Pal thinks. Pal is one of the world\u2019s top \u201cbig-picture\u201d investors. He used\u00a0to work\u00a0at Goldman Sachs\u00a0and run a giant hedge fund, until he made so much money that he [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5824,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[149,138,137,159,188,162,135,115],"class_list":["post-373277","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-casey-research","tag-common-stock-warrants","tag-dudley-baker","tag-international-man","tag-international-speculator","tag-louis-james","tag-stock-warrants","tag-warrants"],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/373277","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=373277"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/373277\/revisions"}],"predecessor-version":[{"id":373278,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/373277\/revisions\/373278"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/media\/5824"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=373277"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=373277"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=373277"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}