by Jason Farrell, Daily Reckoning.com.au:
Citigroup expects both gold and silver to surge in the long term.
Via Zero Hedge:
“Gold and silver appear to be in the process of finding a bottom; however, the price action could continue to be choppy in the coming weeks. Ultimately, we expect both precious metals to move much higher in the long term, with the potential for silver to be the outperformer, as was the case from 2008-11.”
CitiFX, a division of Citigroup, is using the bottoming process for the metals from 2008 as a template. Gold corrected 34% during that year. The recent drop in gold below $1,200 is 36% below the high reached in September 2011. Even if the correction gets closer to the 44% crash seen in the mid-1970s, Citi expects the bullish trend to remain intact.
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