It won’t take many investors to be long on silver to drive the price up $5–10/oz. There are few silver projects being financed to production, and the potential for a fall in silver production is greater than that for gold. Will this trend reverse?ĮC: You can probably count on the fingers of one hand all the silver miners making money today. TGR: For several years, the gold-silver price ratio has been at a traditionally high 65. If gold can get to and through $1,350/oz, silver should be able to get to $22–24/oz at least.Ī zero-yield bond world would be good for gold because the traditional argument against gold-it doesn’t pay interest-would no longer have any force. dollar, but it would also drive more people into other asset classes, such as gold. If things blow up in Greece, it’s tougher to call because that would be tough on the euro and good for the U.S. TGR: What are your 2015 forecasts for the prices of gold and silver?ĮC: I’m still deciding, but if this reversal in the gold-dollar correlation can be maintained, $1,300 to $1,350 per ounce ($1,300–1,350/oz) is a fairly reasonable minimum target. is focused on discovering new near-surface zones that would have the biggest impact on project economics.“ It’s far more likely that Putin would sell U.S. There’s a certain logic to a gold-backed ruble because the ruble is now effectively a petrodollar, and the oil price collapse has been disastrous for Russia. The Russian central bank has bought a lot of it in the last two to three years. TGR: Is there anything to the recent stories that Vladimir Putin might deal with the oil-induced threat to the ruble with the creation of a new ruble, one backed partially by gold?ĮC: Putin clearly likes bullion. dollar, or perhaps no correlation at all. We may be moving to a new model, whereby gold has a weak correlation to the U.S. But when you do view gold as a currency, you see that compared to many other currencies, including the euro, ruble, yen and rupee, it has been a good place to be in over the last year. Most market strategists do not view gold as a currency but only as a commodity. I’ve been waiting quite a while for this to happen. TGR: You wrote recently that “gold is the world’s second strongest major currency.” Are you surprised that it has recently outperformed the U.S. These events have disrupted the equilibrium. supply has grown massively due to fracking and horizontal drilling, while Libya and Iran have both added a million barrels a day. The main reason for the oil price crash is oversupply. “Excelsior Mining Corp.’s Gunnison project has extremely good logistics.“ Estimates for worldwide growth in 2015 have recently come down but not enough to justify the drop in the oil price. And China is the 800-pound gorilla of commodity consumption. Economic growth in China has slowed and will probably slow some more. TGR: Could the oil price collapse be a leading indicator of a global economic slowdown?ĮC: That’s an oversimplification. We’ve already seen bond yields go negative in Germany, France and elsewhere, and we could see big moves in and out of different asset classes. Do you agree?Įric Coffin: I do think 2015 will be pretty volatile, with the potential for nasty financial surprises. The Gold Report:Quite a few analysts believe 2015 will be a year of great economic volatility, as foreshadowed by what happened with oil in 2014. The Gold Report interviews Eric Coffin, editor of the HRA (Hard Rock Analyst) family of publications.
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