Add noted financial analyst Jim Rickards to the list of those expecting a big move up in gold and silver prices.
Jim posted a recent column that was shared on Silver Doctors, and he had some interesting comments indicating good times ahead for precious metals.
Jim noted that “Russia and China continue to be huge buyers,” and that the “physical supply situation is tight as a drum.”
He also referenced one of the several recent “flash crashes” and just how much paper gold is being sold in effort to drive the price down.
“One of the flash crashes was precipitated by the instantaneous sale of gold futures contracts equal in underlying amount to 60 tons of physical gold. The largest bullion banks in the world could not source 60 tons of physical gold if they had months to do it.”
Jim mentions how “deteriorating relations between the U.S. and Russia will only accelerate Russia’s efforts to diversify its reserves away from dollar assets”, “the countdown to war with North Korea has begun,” and that “the Fed will not hike rates again this year.”
As for what he foresees happening in the gold market?
“Acute shortages of physical gold have set the stage for a delivery failure or a short squeeze.
Get ready for an explosion to the upside in the dollar price of gold. Make sure you have your physical gold and gold mining shares before the breakout begins.”
Now certainly the market can unfold in a variety of different ways. And just because this is what Jim sees does not mean to go out and alter your investment strategy.
But to the degree that a number of well respected analysts continue to see tightness in physical metal and the signs of higher prices ahead, you can now add Jim Rickards to the list.