In this update, Tom Cloud reviewed his calls on for the precious metals market last year and what he sees taking place in 2018. Tom discusses their price targets and the overall precious metals market. For example, Tom's forecast for gold to go up 10% in 2017 actually turned out to be 13.5%. This was due to what he saw as the falling U.S. Dollar Index.
According to Tom, the gold price in the past tends to go up about 8% for every 1% decline in the value of the Dollar. The U.S. Dollar fell 3% in 2017, so that suggested a 24% increase in the value of gold. However, the gold price only went up 13.5% last year. So, Tom sees the gold price catching up this year and believes it will increase another 10-15%.
The reason Tom believes the gold price will increase in 2018 has to do with the overvalued Stock Market, the ongoing policy by the Chinese to back their Yuan by gold and the continued weakness of the U.S. Dollar. I most certainly agree with Tom on the U.S. Bubble Stock Market. Just a correction of 10-15% could cause a huge increase in retail and physical gold bar and coin demand.
Tom also discusses how some of his clients did very well by taking his advice on purchasing palladium at the beginning of 2017. Palladium was the big precious metals winner last year by rising 50% from $706 to $1,057. In addition, Tom explains some of the dynamics of the platinum and palladium market.
While I don't pay too much attention to the short-term precious metals price movements as does Tom, he does provide this information to those investors (especially to his wealthy clients) who like to trade the metals. Regardless, I sponsor Tom Cloud on my site because he is one of the most honest and upfront precious metals dealers in the industry. Also, Tom has some of the lowest rates in the precious metals industry.
For those precious metals investors that WANT STORAGE, his service offers the lowest rate in the industry. He has told that when some precious metals investors, who are storing their metal with another company, found out about his low rates, they were literally shocked. Actually, some were quite upset how much they were overpaying.
I am not going to get into a debate on whether or not an individual should use a storage facility to store their metal. Some precious metals investors choose to store gold and silver because they have too much metal or they want to diversify their holdings in many areas.
Check back for new articles and updates at the SRSrocco Report.