by Sam Biggs via Kenesis
Investment and precious metals industry industry insights on the outlook for gold
In recent weeks, the gold price broke through the $1800 per ounce mark, a longstanding barrier of resistance. Andrew Maguire, precious metals expert, and David Tice, investment specialist have observed indicators in their respective industries that suggest this positive price movement is a sign of things to come.
The gold price in the broader economic context
David Tice believes the wider financial context indicates gold’s positive price movement is far from over. Tice cited the recent unprecedented increase in the United States Federal Reserve’s balance sheet from $4 trillion to $7 trillion, as one of several indicators of further positive movement in the gold price.
Exampling reports of recent increases in food prices, David Tice put forward an anticipated increase in inflation as another stimulative factor for the price of gold. The investment expert likened the forthcoming inflation to a “runaway freight train,” once it gets started.
Furthermore, David Tice predicts that as awareness grows of the swollen balance sheets of the Federal Reserve and other G5 countries, interest in physical gold bullion and silver bullion will gather momentum.
Looking to the stock market, David Tice detailed encouraging signs of growth in gold stocks. With mining companies exhibiting huge increases in earnings per share (EPS) and year after year growth rates, unseen for some time.
As David Tice sees it, the impact of these combined factors will be further compounded as investors recognise their effect on the gold price and value of gold stocks, creating “aggressive positive action in the gold markets.”
Precious metals industry insights on the price of gold
According to precious metals wholesaler, Andrew Maguire, the consensus opinion among fellow wholesalers is that the price of gold in US dollar terms is undervalued.
Reportedly, no wholesaler within the industry is offering large quantities of bullion at current prices, with wholesalers preferring to hold on to their physical gold or silver bullion. Andrew Maguire even shares word of the owner of a gold mine who refuses to sell a single ounce, in anticipation of an impending increase in the gold price.
Upon considering their respective markets, precious metals and investment, both Andrew Maguire and David Tice have reached the same conclusion, that the indicators for the gold price look very promising indeed.
Andrew Maguire’s parting thought.
“Liquidity providers are saying even if nobody else bought gold it should be $2500 USD at an absolute minimum.”
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Next Episode: Andrew Maguire sits down and talks all things gold and silver with another special guest from the precious metals industry