Fund Manager: It Looks, Sounds And Smells Like A Gold Bull Market
SilverDoctors.com
July 8, 2019
That said, get used to a higher level of price volatility in the precious metals sector. Dave Kranzler explains why…
Gold tends to perform the best when the real rate of interest (interest rates minus the real inflation rate) is negative. For now, the Central Banks have been able to contain the movement of gold in order to prevent the price from doing what it should be doing when interest rates are negative.
With that enormous amount of negative yielding debt globally, and Treasury yields in the U.S. heading south quickly, from a fundamental standpoint there’s a high probability we have started the next big move higher in gold. Silver will eventually “catch up” and begin to outperform gold. That said, get used to a higher level of price volatility in the precious metals sector. Keep a core position but sell rallies and buy sell-offs if you want to trade the volatility.
Otherwise, sit tight and be right.
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