Gold Bull Market Now in Third Leg, This is What Comes Subsequent

Gold has spent a good period of time above US$2,000 per ounce this yr, though extra just lately it is pulled again.

What has demand for the yellow metallic seemed like in 2023? Talking to the Investing Information Community, Chris Blasi, president of Neptune International, mentioned he is seen high-net-worth and ultra-high-net-worth consumers coming into the market.

“January, February began off somewhat on the sluggish aspect. Then comes March, and right here within the US we had this banking disaster — the failure of Silicon Valley Financial institution, Signature Financial institution up in New York after which most just lately First Republic Financial institution. What we have seen is a big inflow of what we name high-net-worth and ultra-high-net-worth traders,” he mentioned throughout the interview.

“And what they had been telling us, what we obtained, is they’ll transfer cash round and unfold it between banks, as a result of everyone seems to be frightened about insurance coverage protection. However plenty of them got here to the conclusion that they needed to scale back these massive money positions they’d and now they had been resigned that it is time to get within the metals market,” Blasi defined.

Giant gamers are shopping for silver too, though the white metallic is seeing extra consideration from smaller-scale traders.

In Blasi’s view, gold is in a long-term secular bull market, which signifies that regardless of is fall again beneath the US$2,000 mark, it nonetheless has loads of room to run. He mentioned the primary leg of the bull market ran from 2001 to 2011; then the second leg introduced a pullback of fifty %, with a backside for gold in December 2015. The third leg is now happening and will finish in a parabolic blow off.

“So long as this retains enjoying out … gold must be considerably greater within the subsequent few years,” mentioned Blasi.

He identified that the world is altering rapidly, shifting from a unipolar system to a multipolar setup.

“Once you’re passing the baton from one order to the following, that’s at all times a time of great disruption and alter. And that is when gold thrives — gold thrives in chaos as a result of it’s a historic retailer of wealth that’s outdoors the system, is actual cash,” he mentioned.

Watch the interview above for extra of Blasi’s ideas on gold, in addition to subsequent steps from the US Federal Reserve, the development towards de-dollarization and fallout from the debt ceiling. He additionally discusses the platinum and palladium markets.

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Securities Disclosure: I, Charlotte McLeod, maintain no direct funding curiosity in any firm talked about on this article.

Editorial Disclosure: The Investing Information Community doesn’t assure the accuracy or thoroughness of the knowledge reported within the interviews it conducts. The opinions expressed in these interviews don’t replicate the opinions of the Investing Information Community and don’t represent funding recommendation. All readers are inspired to carry out their very own due diligence.