Blog : Silver, Gold, Platinum Stocks

by Peter Leeds on September 21st, 2011

Below, you will find our latest Forbes article for our penny stocks blog. It includes our outlook for gold, silver, and platinum precious metals. Please take the time to give it a read, and click "follow" so that you're always informed of the latest from our Forbes penny stocks blog.

Also, feel free to post your comments, and start a conversation with me.

Until I hear from you, best wishes,

Peter Leeds, The Penny Stocks Professional

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Where Gold, Silver, Platinum Penny Stocks Go From Here

It was 4:30 am. I was reviewing my already bullish outlook for gold prices, and was so focused on the latest data that any chance of getting sleep had long vanished.

Part of the game of financial analysis (if you want to do it well) is continually reviewing your expectations. That's exactly where I found myself as the sun started hinting it might rise.

I questioned if my predictions of $2,500 gold could be reached, and if there was enough demand to drive silver prices towards $85 per ounce. These were some pretty lofty expectations, which I originally made back when gold was trading over $500 less per ounce than it's current level.

After burning out my eyes on the data, reviewing former expectations, and taking new events into account, it finally all came together. A final moment of clarity. And the numbers shocked me.

Here's what I found:

My outlook for gold, silver, and platinum has become even more bullish. I'm now expecting precious metals to hit the following prices:

• $3,200 gold (80% higher than now)
• $125 silver (220% higher the now)
• $5,800 platinum (225% higher than now)

There are a number of factors that are pushing precious metals higher. We expect these price drivers to accelerate, putting our target prices well within reach.

There is a very limited supply of gold in the face of massive central bank purchases from India and China. Now, for the first time in over 20 years, European central banks have become buyers as well.

At the same time, America, the EU, and now Switzerland have committed to currency debasement (meaning printing new money) as a way to pay their bills, while keeping their dollars, or Francs, or Euros low, which they expect to help exports and employment figures.

These, along with several other factors I reviewed, all indicate that we haven't yet seen anything close to a top in gold prices. Take all the above ground gold in the world (158,000 tons, which would cover only 1 tennis court if it were in a cube), factor in the central banks tripping over each other to buy by the ton, and you should begin to get an idea of how this is all going to play out.

Given much higher prices for precious metals, there will be some select penny stocks that will benefit significantly, while other penny stocks will languish even in the face of soaring commodities. I will explain the types of penny stocks to look for in an upcoming blog entry.

Until then, don't jump the gun. You do NOT want to buy into any penny stocks that are exploration companies, those with "probable" or "indicated" reserves, or that have any forward hedging. More on this in an upcoming entry - be sure to click "follow" so you don't miss it!

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