More People Will Wake up to the Need of Precious Metals

There is no change fundamentally in why investors would buy gold in 2001 compared to why they would buy gold in 2013 or 2014. The fundamental fact is that there isn't a nation state on earth that has a handle on the debt problem. Because of that, we're going to see more people wake up to the need for precious metals, because precious metals are true money outside the framework of the current system.

The correction we had in silver and gold isn't that abnormal in a major bull market. I've been through one bull market already in my lifetime. I watched gold go from the fixed price of $42.22/oz up to $200/oz, then to sell off to around the $100/oz level. It later advanced all the way back to the peak of $850/oz in January 1980. I have seen the damage a big shakeout in a major bull market can have. That experience makes me a little bit more hardened to weather the storm we just experienced.

However, I think that the worst is over. I think silver has bottomed. Gold probably has as well. This year, 2014, will be a rebuilding year. Depending on what happens in the global economic system, it's possible that we could even see a very good year for the metals, but I don't anticipate that. I'm anticipating a rebuild year where silver climbs back over $30/oz and gold travels up well over $1,600/oz, probably to the $1,700/oz level or higher depending on how the economy unfolds.

- Source, The AU Report:

http://www.theaureport.com/pub/na/david-morgan-the-silver-bottom-is-in-time-to-hold-add-and-ride-it-out