2009-11-17 19:46:03 -
Jeffrey Nichols, Managing Director of American Precious Metals Advisors and Senior Economic Advisor to Rosland Capital LLC, made the following comments as gold continued to hold its record price above $1100 an ounce.
“While a golden rule in the current precious metals market is ‘Never stand in the way of a raging bull,’ investors should also note the other adage of ‘Caveat Emptor’ or ‘Buyer Beware.’ So far, corrections have been brief with good support under the market from central banks and hedge funds using each pullback to accumulate metal.
“In addition, Barrick Gold, the world’s largest gold-mining company, is committed to buying back its previous forward sales in order to maximize shareholder exposure to the expected rising price – and they,
too, are likely buying on each dip. However, if these players stand aside for any reason gold prices could drop precipitously, and this would be an opportunity for investors to establish or augment their own positions.”
Nichols on Favorable Central Bank Attitudes:
“Last week’s announcement from the Sri Lankan central bank about its own recent gold buying included news that other unnamed central banks were also accumulating gold in order to diversify official monetary reserves and reduce U.S. dollar risk.
“Before long, we should expect announcements of central bank gold purchases from one country or another – and this could trigger another quick jump in the price of gold, much like that which occurred after the Reserve Bank of India announced its 200 ton purchase of IMF gold.
“Speaking of IMF gold, there remains another 203 tons yet to be sold – and it will likely be taken by another country (or countries) swimming in a rising tide of unwanted U.S. dollars. China remains a prime candidate especially if it wishes to further register its displeasure with U.S. monetary, fiscal, and exchange rate policy.”
Nichols on Inflation:
“Rising U.S. consumer price inflation is already in the cards, thanks to quantitative easing and rapid growth of U.S. government debt. In contrast, the Fed is hoping low rates of capacity utilization and high unemployment will keep inflation at bay. But, they are not factoring in either the continuing depreciation of the dollar or the stronger economic recoveries in China, India, Brazil, and other emerging economies – and the resulting price rises for oil and other commodities.”
Jeffrey Nichols of American Precious Metals Advisors and Senior Economic Advisor to Rosland Capital is available for interviews. To speak with Jeffrey, please contact Larry Farnsworth of Crosby~Volmer International Communications at (202) 232-6574 or by email at
lfarnsworth@crosbyvolmer.com : mailto:lfarnsworth@crosbyvolmer.com .
About Rosland Capital
Rosland Capital LLC is a leading precious metal asset firm based in Santa Monica, California and buys, sells, and trades all the popular forms of gold, silver, platinum, palladium and other precious metals.
Founded in 2008, Rosland Capital strives to educate the public on the benefits of investing in gold bullion, numismatic gold coins, silver, platinum, palladium, and other precious metals. For more information please visit www.roslandcapital.com :
cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww .. .
About Jeffrey Nichols
Jeffrey Nichols, Managing Director of American Precious Metals Advisors and Senior Economic Advisor to Rosland Capital, has been a leading precious metals economist for over 25 years. His clients have included central banks, mining companies, national mints, investment funds, trading firms, jewelry manufacturers and others with an interest in precious metals markets.
for Rosland Capital LLCLarry Farnsworth, 202-232-6574
lfarnsworth@crosbyvolmer.com : mailto:lfarnsworth@crosbyvolmer.com
