Gold seemed to have found a base today, as the dollar slipped. Yet the consensus seems to be that there isn’t much upside. However, the experts beg to differ.
Miles Franklin founder David Schectman says demand is still strong for the company’s coins with sales much the same as last year. He is seeing no soft market for physical gold.
And that is the key. Schectman says:
“First of all, it would serve you well to separate, in your mind, the paper gold and silver markets from the physical gold and silver markets. Sooner or later, probably sooner, the physical demand will wrestle price setting from the paper market. But for now, that is not the case.”
Precious metals expert JIM SINCLAIR believes the big bank investors have been manipulating the market for their own ends.
“The big winners on the way up will be the bullion banks (Goldman Sachs and JPMorgan). They make money both ways, either a rising or falling market, but the big money will be made on the way back up and they have positioned themselves for this event and have little reason to suppress the price going forward. They have essentially squeezed out the “longs” the momentum hedge funds, and there is little profit left for them to make by continuing to suppress the price.”
Ted Butler is the sole author of the monthly publication from Butler Research, LLC, which focuses heavily on precious metals. He likes what he’s seeing:
“The big theme, as I see it, is JPMorgan becoming more aggressive in acquiring physical silver and gold while at the same time reducing its COMEX short position in each almost as aggressively. It’s hard to imagine a more bullish backdrop for futures prices.
David Schectman says he expects gold prices to start rising as inflation re-appears, the dollar retreats and the Fed’s next rate hike goes into effect.
“Once the market for the metals turns up, it should be the continuation of a long lasting and powerful bull market that started in 2001.”