23 Reasons to Be Bullish on Gold

By: Laurynas Vegys | Wed, Jan 8, 2014
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It's been one of the worst years for gold in a generation. A flood of outflows from gold ETFs, endless tax increases on gold imports in India, and the mirage (albeit a convincing one in the eyes of many) of a supposedly improving economy in the US have all contributed to the constant hammering gold took in 2013.

Perhaps worse has been the onslaught of negative press our favorite metal has suffered. It's felt overwhelming at times and has pushed even some die-hard goldbugs to question their beliefs. not a bad thing, by the way.

To me, a lot of it felt like piling on, especially as the negative rhetoric ratcheted up. Last year's winner was probably Goldman Sachs, calling gold a "slam-dunk sale" for 2014 (this, of course, after it's already fallen by nearly a third over a period of more than two and a half years-how daring they are).

This is why it's important to balance the one-sided message typically heard in the mainstream media with other views. Here are some of those contrarian voices, all of which have put their money where their mouth is.

And then there's the people who should know most about how sound the world's various types of paper money are: central banks. As a group, they have added tonnes of bullion to their reserves last year.

Gold Consumer Demand, 12 Months Ended Q313

China ended 2013 officially as the largest gold consumer in the world. Chinese sentiment towards gold is well echoed in a statement made by Liu Zhongbo of the Agricultural Bank of China: "Because gold has capabilities to absorb external economic shocks, growth of its use in the international monetary system will be imminent."

And those commercial banks that have been verbally slamming gold-it turns out many are not as negative as it might seem.

None of these parties thinks the gold bull market is over. What they care about is safety in this uncertain environment, as well as what they see as enormous potential upside.

In the end, the much ridiculed goldbugs will have had the last laugh.

 


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Laurynas Vegys

Author: Laurynas Vegys

Laurynas Vegys
Research Analyst
Casey Research, LLC.

Laurynas Vegys

Laurynas Vegys is a financial analyst whose work supports all of Casey Research's metals publications. Laurynas is also one of Louis James' former students, having attended a Casey Youth Conference on Liberty and Entrepreneurship in Lithuania during a summer between classes while working on his master's degree from the University of Vilnius. Laurynas' background in finance and economics has equipped him with skills necessary for his analytical work on the metals team. He researches diverse base and precious metals plays as well as global trends both in the mining industry and the global economy.

Laurynas was a perfect fit for the Casey team, having lived in a dozen countries and visited at least 50 more. He prefers to think of himself as a citizen of the world, just like Doug Casey. Like Louis, Laurynas is fluent in several languages, including his native Lithuanian, Spanish, Russian, and French. Laurynas has a great passion for his work and strongly believes in the potential of the mining industry to substantially improve lives of millions of people around the world -- a positive contribution to our world that investors deserve to be amply rewarded for participating in.

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Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
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