© Garrett Goggin
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I would not agree with this point of view. We just went through one of the longest bear markets for about six years long, with negative interest rates in about 35% of the countries worldwide which is a part of gold prices. Thus, we believe that bear markets are behind us, and that gold is going to be moving to the upside for the next few years. However in a shorter-term of the next months to half-year, we are looking for a short-term pullback. The sentiment is pretty bullish right now and commercials are very short. We think gold is going to have a little step back along with a little bit of the Dollar rally that is going to be bear enough, because gold is going to be higher over the next few years.
Silver has been the best performing precious metal so far this year, and some analysts state that silver will outperform gold into 2017. Are you of the same opinion or not? Why?
When gold is high silver is moving also. The reason is the divertive of gold that is more volatile than gold's. Thus, if gold moves, silver is going to move higher on a percentage basis. We focus is on the miners, and on silver miners in general, and here we are with a price which is going to surpass $14 per ounce. This move is profitable for the silver miners, and we expect large silver's rally. Thus, I would agree with that opinion.
What fundamentals can influence the performance of the bullion in the near future? What is your current forecast for bullion price in the next three months and in the longer term?
First of all, I believe the negative interest rates, since few of the European countries are experiencing negative interest rates, possibly Japan and United States. When you are saving money in the bank, it is important to analyse the performance of gold as well, in terms of negative real rates. One move away from real rates towards nominal negative rates is going to be extremely vulnerable.