Sam Briggs

17th July 2020

Talking Gold, with Andrew Maguire

Andrew Maguire and David Tice exchange industry insights on the outlook for the gold price.

‘Talking Gold’ – a fortnightly update from Kinesis Director and precious metals expert, Andrew Maguire, providing a detailed round-up of the recent action in the gold and silver markets –  a regular feature from the Kinesis Youtube show ‘Live from the Vault’.

In this week’s deep dive into the gold and silver markets, Andrew Maguire exchanges predictions on the outlook for the price of gold with David Tice, an investment professional with an exceptional track record in short stocks and the long gold trade.

David Tice has founded and run two successful investment firms, and shares his informed market insights in appearances on the Nightly Business Report, Wall Street Journal Report, CNBC and Bloomberg TV, amongst others.

The gold price in the broader economic context

In recent weeks, the gold price broke through the $1800 per ounce mark, a longstanding barrier of resistance. Investment specialist, David Tice, believes the wider financial context indicates this positive price movement is a sign of things to come.

David Tice cited the recent unprecedented increase in the United States Federal Reserve’s balance sheet from $4 trillion to $7 trillion, as one of several indicators of further positive movement in the gold price.

Exampling reports of recent increases in food prices, David Tice put forward an anticipated increase in inflation as another stimulative factor for the price of gold. The investment expert likened the forthcoming inflation to a “runaway freight train,” once it gets started.   

Furthermore, David Tice predicts that as awareness grows of the swollen balance sheets of the Federal Reserve and other G5 countries, interest in physical gold bullion and silver bullion will gather momentum.

Looking to the stock market, David Tice detailed encouraging signs of growth in gold stocks. With mining companies exhibiting huge increases in earnings per share (EPS) and year after year growth rates, unseen for some time.

As David Tice sees it, the impact of these combined factors will be further compounded as investors recognise their effect on the gold price and value of gold stocks, creating “aggressive positive action in the gold markets.”

Watch gold blogger Harvey Organ share his account of his physical gold bullion disappearing in Scotiabank’s bullion vault in last week’s Talking Gold.

Precious metals industry insights on the price of gold

According to precious metals wholesaler, Andrew Maguire, the consensus opinion among fellow wholesalers is that the price of gold in US dollar terms is undervalued.

Reportedly, no wholesaler within the industry is offering large quantities of bullion at current prices, with wholesalers preferring to hold on to their physical gold or silver bullion. Andrew Maguire even shares word of the owner of a gold mine who refuses to sell a single ounce, in anticipation of an impending increase in the gold price.

Upon considering their respective markets, precious metals and investment, both Andrew Maguire and David Tice have reached the same conclusion, that the indicators for the gold price look very promising indeed.

Andrew Maguire’s parting thoughts:

Liquidity providers are saying even if nobody else bought gold it should be $2500 USD at an absolute minimum.

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Next Episode: Andrew Maguire sits down and talks all things gold and silver with another special guest from the precious metals industry.