Andy Schectman: The Market is Setting Up for a Major Uptake in Gold

TL;DR

Trump's instability and uncertainty are expected to lead to a major uptake in gold prices in the second half of 2017.

Transcript

percy loretta with the investing news network and here with me today is andy sheckman president of miles franklin thank you so much for joining us today awesome so well thanks for having me appreciate it so my first question is about Trump we know that Trump's instability has been one of the factors impacting gold prices in the first half of the ye... Read More

Key Insights

• 🏅 Trump's instability and uncertainty are expected to drive up gold prices in the second half of 2017.
• 🧘 Commercial banks have significantly reduced their short positions on gold, indicating a bullish market trend.
• 😮 Interest rates are unlikely to rise substantially, and a small uptick can be favorable for gold.
• 🇺🇸 Factors to watch include money creation, debt, geopolitical events, and the decline of the manufacturing base in the United States.
• ⛽ Platinum may not be as attractive as silver and gold due to diesel fuel regulations impacting the demand for catalytic converters.
• 🤘 Due diligence is crucial when buying physical precious metals to avoid being taken advantage of by less reputable companies.
• ❓ Mining shares can be a rewarding addition to a portfolio, with companies like First Majestic and Peridiom being recommended.

Questions & Answers

Q: How does Trump's instability and uncertainty impact gold prices?

Trump's instability and uncertainty cause the market to appear bullish for gold, with commercial banks reducing their short positions.

Q: Will the Fed increase interest rates later in 2017, and how does this affect gold prices?

Andy Sheckman believes that interest rates have a minimal chance of rising substantially. A small uptick in rates has historically been positive for gold.

Q: What factors, aside from Trump and the Fed, could impact the gold market in 2017?

Factors to watch include money creation, debt, geopolitical events, and the decline of the manufacturing base in the United States.

Q: What precious metals should investors consider this year?

Andy Sheckman suggests that platinum, despite its low prices, may not be as attractive as silver and gold due to diesel fuel regulations in Europe affecting the demand for catalytic converters.

Q: Can investors still make big gains in the precious metal sector?

Yes, big gains can still be made in the precious metal sector. Due diligence is crucial when buying physical precious metals to avoid being taken advantage of by less reputable companies.

Summary & Key Takeaways

• The commercial banks have significantly reduced their short positions on gold, indicating a bullish market trend.

• Andy Sheckman believes that interest rates are unlikely to rise substantially and a small uptick in rates is generally favorable for gold.

• Factors investors should watch for include money creation, debt, geopolitical events, and the decline of the manufacturing base in the United States.