Talking gold, with Andrew Maguire
For the full analysis into the gold and silver markets, presented in illuminating detail, have a watch of Talking Gold in Episode 16 of Kinesis’ ‘Live from the Vault’.
In this week’s exploration of the gold and silver markets, Andrew Maguire exchanges predictions on the outlook for the gold price with investment professional, David Tice.
David Tice has founded and run two successful investment firms, and shares his market insights in appearances on the Nightly Business Report, Bloomberg TV, Wall Street Journal Report and CNBC, amongst others.
The price of gold in the wider financial context
The gold price recently broke through the $1800 per ounce mark, a longstanding barrier of resistance. Investment specialist, David Tice, believes the broader economic picture indicates that this upwards price movement is a sign of things to come.
David Tice highlighted the recent unprecedented increase in the balance sheet of the United States Federal Reserve’s from $4 trillion to $7 trillion, as one of several indicators of further positive movement in the gold price.
Citing recent increases in food prices, David Tice predicted an increase in inflation as another driving factor for the gold price. The investment professional compared the forthcoming inflation to a “runaway freight train,” once it begins.
In addition, David Tice anticipates that as awareness of the swollen balance sheets of the Federal Reserve grows, interest will build in physical gold bullion and silver bullion investment.
As David Tice sees it, the impact of these combined factors will be further compounded as investors witness their effect on the price of gold, leading to “aggressive positive action in the gold markets.”
Watch gold blogger Harvey Organ share his account of his gold bullion disappearing in Scotiabank’s Toronto vault in last week’s Talking Gold.
Precious metals industry insights on the gold price
According to precious metals expert, Andrew Maguire, the prevalent opinion among fellow wholesalers is that the gold price in US dollar terms is undervalued.
Reportedly, no precious metals wholesaler is offering large quantities of gold or silver bullion at current prices, with wholesalers preferring to hold on to their physical gold or silver bullion. Andrew Maguire even details a gold mine owner who refuses to sell a single ounce, in anticipation of an upcoming increase in the price of gold.
Upon considering their respective markets, precious metals and investment, both Andrew Maguire and David Tice believe that the chance of positive action in the gold price looks 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 talks through the gold and silver markets with another special guest from the precious metals industry.