Orderly Ascent in Gold To Become Disorderly
With gold hitting new highs, King World News spoke with Ben Davies, CEO of Hinde Capital, out of London to get his take on the move in gold and silver. Ben stated, “Even at new nominal highs there is a desire for gold, but the long-term holders are not sellers at these prices. They will have to be enticed into letting some go by much higher prices, as well as more attractive valuations in other asset classes.”

"So far this has been a very orderly market, despite the plethora of yahoos greeting new highs. But who really owns gold? The market is so orderly here, it feels like it’s being managed, and at some point the orderly rate of ascent will become disorderly to the upside as we enter into new price discovery.”

“We are still seeing negative real returns on bond investments. Investors have to ask themselves at some point, ‘Should we move from bonds into gold?’ Gold has no liabilities, or default risk, whereas government bonds these days are accompanied in some cases by tremendous risks.”

Regarding silver specifically Ben commented, “With silver at the $22 level, supply is extremely tight and at a 60 ratio to gold it remains highly undervalued.”

It seems we are in for some disorderly activity to the upside in the not too distant future, so hang on and enjoy the ride.

Eric King

KingWorldNews.com