New entrants do not want to miss Gold’s next big move up: Jeffrey Nichols

UNITED STATES April 13 2017 1:22 PM

NEW YORK (Scrap Register): Economic and political developments are likely to continue favoring gold, attracting new market participants who do not want to miss out on the next big rally, said Jeffrey Nichols, managing director of American Precious Metals Advisors and senior economic consultant for Rosland Capital. 

The veteran analysts points out there has been a “massive shift” in gold ownership from Western markets to Asian markets, particularly China and India. 

“Asian investors buying small bars and investment-trade jewelry are mostly long-term hoarders who are likely to hold on to their precious-metals purchases for decades, if not longer, passing ownership from generation to generation,” he added.

“We think the news — both economic and political — will continue to favor the long side of the market, with gold more likely than not to ratchet up into a higher and wider trading range in the next few weeks.” Much of the recent trading has been by a small number of hedge funds and institutional speculators, Nichols added.

“But the market is beginning to attract broader participation with new entrants not wanting to miss out on the next big move up,” Nichols noted.

“At the same time, retail dealers report fresh demand for bullion coins and small bars. Here, too, we anticipate the rising price will attract fresh buyers,” he concluded.