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When Will Gold Finally Rally Again? (GLD)

Published 06/13/2018, 07:05 AM
Updated 05/14/2017, 06:45 AM

From Collin Kettell: In this interview, precious metals expert Eric Sprott agrees that the average gold investor likely feels rather depressed.

However, behind the scenes, there is a lot of activity. Kirkland was up 150% last year, and Novo has good performance. He feels we are still in the beginnings of a bull market for several reasons. Real economic recovery is lacking as low-interest rates and money printing continues. The second half of 2018 should be better than the first.

Commodity prices are looking good across many assets like copper, lead, and zinc. Many exciting things are going on in the commodity space. Lithium, nickel, and vanadium are all also doing quite well.

Much of the speculative investment in cryptocurrencies has now moved away from that sector. A decline in the economy and stock market could happen soon. Those two things will be critical to watch as a drop should get people thinking about gold and silver.

Eric likes the recent bulk sample results from Novo Resources. Marindi Metals have found fine gold and recently nuggets. Marindi feels that the basin-wide theory is correct and that could mean a 250km by 250km with the potential for multiples of tens of millions of ounces.

Kirkland is doing very well regarding earnings and their stock still seems cheap compared to other companies. He discusses the mines and production details that they are working on.

It takes work to find the opportunities, and you have to be on the hunt for them. Your fortunes can change quickly in the natural resource sector. When things turn good, the stock prices often change fast. If you don’t have time to look, you need to invest with someone that can do that for you.

The SPDR Gold Shares (NYSE:GLD) fell $0.17 (-0.14%) in premarket trading Wednesday. Year-to-date, GLD has declined -0.67%, versus a 4.94% rise in the benchmark S&P 500 index during the same period.

GLD currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 33 ETFs in the Precious Metals ETFs category.

Latest comments

This whole fund is very sketchy as it claims to be fully backed by physical gold bullion but yet it refuses to give retail investors the right to redeem for any of these ‘claimed’ gold bullion. This fact alone means GLD shares are nothing more than paper at the end of the day. GLD’s prospectus is chalk full of weasel clauses and legal loopholes that allows the fund to get away without the full physical gold backing. One good example of this is the clause that states GLD has no right to audit subcustodial gold holdings. To this day, I have not heard of a single good reason for the existence of this audit loophole. Also, there was a well documented visit by CNBC's Bob Pisani to GLD's gold vault. This visit was organized by GLD's management to prove the existence of GLD's gold but the gold bar held up by Mr. Pisani had the serial number ZJ6752 which did not appear on the most recent bar list at that time. It was later discovered that this "GLD" bar was actually owned by ETF Securities.
Hi But short term view it would be nice down traind started .and bleow sutabal@1247
"GLD currently has an ETF Daily News SMART Grade of A (Strong Buy)". . I frequently see this recommendation from "ETF Daily News" so I assume you are very familiar with this fund. I've been trying to do my due diligence into GLD but have been unable to obtain any details into the state of its insurance. Would you happen to know any specifics here? The following mirrors my experience: "Did anyone try calling the GLD number for general inquiries at (866) 320 4053 in search of numerical details on GLD's insurance? The prospectus vaguely states "The Custodian maintains insurance with regard to its business on such terms and conditions as it considers appropriate which does not cover the full amount of gold held in custody." When I asked about how much of the gold was insured, the representative proceeded to act as if he didn't know and said they were just the "marketing agent" for GLD. What kind of marketing agent would not know such basic information about a product they are marketing?"
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