Peter Grandich told Michael Campbell he thinks that the consolidation of Gold around the $1,600 level is constructive within the Mother of All Bull Markets and in his opinion the Bull Market continues to be fully intact. After Gold has had a major move for a decade, the constructiveness is that almost a year from the top last September to the lows today of $1,500 and change was not that bad. "We have been making a series of slightly higher lows and it looks like the market is ready to challenge and surpass the resistance at $1,630 - $1,650".
What Peter found really interesting this past week, "and I just think it was a damaging blow of many that continue for the perma bears in Gold, was the news on George Soros. A year ago the perma bears throughout the world highlighted the fact that Soros said that Gold was in the ultimate asset bubble and was about to collapse. What news comes out? George Soros doubles his position in Gold. I not only find that interesting, I find that most if not all of the bearish arguments get torn up".
Peter also points out that wiithin the last year we heard about all of the selling that was going to come out, yet what was the net result? Central Banks were net buyers. Tp Peter the Gold market remains very very bullish. Further, it continues to suggest that all of the reasons that you want to own it remain. Central Banks aren't sellers anymore, producers don't sell it forward anymore and there is an ever increasing demand. Almost all of the physical buying is done outside America, he calculates that if he walked into any financial institution here in any of the 50 states in America and looked at 100 accounts, 99 of them would not have touched physical Gold. Simply put, that until we see the North American Community at large talking about and buying Gold we are not anywhere close to the highs it is going to strike.
Peter also highlights a very important change in Gold market, and that change is the seasonality factor. "Almost 65% of Golds demand for Gold is related to Jewelry purchases. Jewelry fabricators basically take the months off July and August, but return in early September to do about 2/3'rds of all their business in the next 6- 8 weeks. So that seasonal factor now is going to start to turn positive for Gold, and I fully suspect and am anticipating in my own heart that we are going to break about resistance and if you have me on in the next month or two we will have Gold in the $1,700 - $1,800 area".
Though he never finished high school, Peter Grandich entered Wall Street in the mid-1980s with no formal education or training and within three years was appointed Vice President of Investment Strategy for a leading New York Stock Exchange member firm. He would go on to hold positions as a Market Strategist, portfolio manager for four hedgefunds and a mutual fund that bared his name.
His abilities has resulted in hundreds of media interviews including GMA, Neil Cavuto’s Your World on Fox News, The Kudlow Report on CNBC, Wall Street Journal, Barron’s, Financial Post, Globe and Mail, US News & World Report, New York Times, Business Week, MarketWatch, Business News Network and dozens more. He’s spoken at investment conferences around the globe, edited numerous investment newsletters, and is one of the more sought after commentators.
Grandich is the founder of Grandich.com and Grandich Publications, LLC, and is editor of The Grandich Letter which was first published in 1984. On his internationally-followed blog, he comments daily about the world’s economies and financial markets and posts his views on social and political topics. He also blogs about a variety of timely subjects of general interest and interweaves his unique brand of humor and every-man “Grandichism” expressions with his experience gained from more than 25 years in and around Wall Street. The result is an insightful and intuitive look at business, finances and the world, set in a vernacular that just about anyone can understand. In his first year, Grandich’s wildly-popular blog had more than one million views. Grandich also provides a variety of services to publicly-held corporations on a compensation basis.
Grandich’s autobiography, Confessions of a Wall Street Whiz Kid, was publiched in fall 2011.