Gold set a new record high this week, and as this market and other precious
metals move higher, it tends to bring a lot of the critics out of the woodwork.
The words bubble and overbought become linked to the markets in news headlines.
There are probably plenty of analysts who are eager to be the ones to call a
reversal in these markets, but I am here to remind you of all the things that
are likely to support gold and silver in the coming months.

http://futurespress.com/imgndoc/bullionreport...
Past performance is not indicative of future results.
***chart courtesy of Gecko Software

The first thing to keep in mind is that gold and silver are far from being
tarnished in the eyes of investors. Any reason for a strong sell off goes out
the window when you take a look at the strong domestic and international demand
for precious metals since 2008. The economic collapse and a lack of significant
recovery have helped remind investors why metals are an option. They cannot be
manipulated or undermined by one central bank or nation's actions. Growth in
investment demand was led by the explosion in ETF participation and is currently
being fueled by expansion in China and India. The growth in developing
industrial nations was sparked by disposable incomes allowing people to buy more
jewelry – now it is led by people looking for a place to invest for asset
preservation.

The growing middle class in both areas has been picking up the demand slack any
time there is a significant pulling of interest from Europe or the US. The
quarterly reports from the World Gold Council have shown that in action whenever
ETF positions are pulled, or other holdings liquidated. What's interesting is
the current debt wrangling on both sides of the Atlantic, and how that might
propel western and eastern alike into haven holdings. That is where precious
metals markets are likely to find the next layer of support.

view full report at :
http://newsletter.berkshireassetmgt.com/?bymonyr=07/20/2011