Blanchard experts see elections leading gold higher
Economic Research Unit says metals poised for continued bull market, regardless
of midterm elections results
NEW ORLEANS (November 7, 2006) – Analysts at the Blanchard Economic
Research Unit have been predicting the return of the bull market in precious
metals. Gold’s role as an alternative monetary asset has already sparked
renewed investor interest, and the midterm elections will provide an additional
catalyst for new price growth as the end of 2006 nears.
“We expect the precious metals markets to respond positively to the
elections,” says Donald W. Doyle, Jr., Chairman and CEO of Blanchard and
Company, Inc. “Whether the Republicans retain control or the Democrats
wrest the majority from them, the U.S. dollar remains, and will remain, in a
very precarious position.”
Doyle explains that current spending policies have made the dollar vulnerable
to rapid depreciation. If a new Democratic leadership emerges from the elections,
the perception is that they will try to implement policies that will have the
effect of weakening an already softening economy and plunging the nation further
into debt, a scenario that will push precious metals prices higher, he says.
Doyle says that another catalyst for the next price move will be the Fed’s
continued pause in raising interest rates that, when coupled with the midterm
elections, will put renewed pressure on the U.S. dollar. He added that Blanchard
expects gold to climb to $800 in the near term, with silver following suit to
$18 per ounce.
“Gold is just beginning to exert its role as a monetary asset versus
simply a commodity play, and Blanchard believes the next period of the gold
bull market will result from investors searching for currency alternatives – not
simply commodities,” Doyle says. “We believe the bull market in
commodities will continue for several more years, with gold and other precious
metals becoming the leader in the sector.”
Blanchard and Company, Inc. is the largest and most respected retailer of
American rare coins and precious metals in the United States, having been involved
in more than $1 billion in sales in the last decade and serving more than 350,000
people with expert consultation and assistance in the acquisition of American
numismatic rarities and gold, silver and platinum bullion. Blanchard and its
predecessor companies have called the New Orleans area home for more than 30
years. For more information about the company, visit BlanchardGold.com or call
the company toll-free at 1-800-880-4653. |
