© Gold Stock Analyst
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The latest economic data showed the US economy grew at a 1.2% pace in the Q2 and the country's retail sales showed no growth in July, driving the price of gold higher. In your point of view, will gold remain high or is it just a temporary appreciation?
To my mind, it is going to remain high, as the US economy is not that strong: the employment figures are misleading because they do not include a lot of people that left their jobs, plus, retail sales are turning down, which does not seem to be suggesting sustainable growth. Moreover, I do believe that the Fed is not going to raise interest rates anytime soon, which is, obviously, going to be good for gold.
Analysts say that it is the perfect time to invest in silver. Do you share this point of view or not? Why?
I would say that February of 2016 was the perfect time to invest in silver. A lot of miners that we cover have had a great run so far: they are up nearly 300-500% since February of 2016. At the moment, we think silver is going to be inching higher along with gold, but I am convinced that the good run has already happened this year.
What fundamentals can influence the performance of gold and silver in the near future?
The main driver for gold going forward would be accommodative Central banks around the world. At this point, they cannot stop easing policy - they are not going to raise interest rates, instead, they are going to keep on loosening to leave interest rates low by all means including helicopter money, which, in turn, will be benefiting gold and silver prices.