Why We Know Gold Prices Are Headed Higher

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Over the long haul, gold prices are headed higher.

If I got your attention with that statement, I'm glad – that was precisely my intent.

You see, our global-investing experts here at Money Morning believe the worries about a major decline in gold prices are overblown.

In fact, we see two strong profit plays in this realm – in gold itself, and in gold-mining stocks.

Here's why.

Up to now, gold-mining stocks have lagged gold prices. That's been a puzzle to gold bugs and institutional investors alike: After all, profits have been strong – and with gold prices still not far below their record highs, that doesn't figure to change.

Indeed, institutional investors are even speculating (amongst themselves, of course) that a takeover frenzy is about to sweep the industry.

For that to happen, however, gold prices have to remain above the $1,500-an-ounce level – something most investors have grown increasingly fearful isn't going to happen.

We know differently.

We Know Gold Prices Are Headed Higher

Powerful trends are in place to steady gold prices in the near term – and to send prices higher in the longer term. And that means gold remains a solid long-term profit play. And the same is true for gold-mining stocks – provided you pick the right ones.

In today's (Tuesday's) issue of Private Briefing – in a report entitled "A "Tidal Wave' of Takeovers is Headed Our Way" – we'll show you how we know gold prices are headed higher.

In fact, they have to – and we can prove it.

And while you're there, check out Monday's Private Briefing report "The Brewing "Takeover Mania' in Gold-Mining Stocks," in which global-resources expert Peter Krauth spotlights two mining companies that are prime takeover candidates.

To find out more, please click here.

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About the Author

Before he moved into the investment-research business in 2005, William (Bill) Patalon III spent 22 years as an award-winning financial reporter, columnist, and editor. Today he is the Executive Editor and Senior Research Analyst for Money Morning. With his latest project, Private Briefing, Bill takes you "behind the scenes" of his established investment news website for a closer look at the action. Members get all the expert analysis and exclusive scoops he can't publish… and some of the most valuable picks that turn up in Bill's closed-door sessions with editors and experts.

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  1. handro | September 23, 2011

    Nice call on Gold. Went down 5.7% today and down 10% for the week. You probably blew up a few portfolios on that call. Remind me again why gold "has" to go up and how you "know" it. Nothing like making ludicrous claims about absolutely guaranteed outcomes in a volatile market to bring out the litigious!

  2. Tony | September 26, 2011

    Gold in free fall – 20% down from high

    article fail :P

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