Are Gold & Silver on the Verge of a Major Rebound?

Jeffrey Christian: We’re waiting a couple days, and I think a lot of investors who have been telling us they’re waiting to see how low the price goes before they buy, I think they’ll wait a couple days, too. At some point, someone’s going to say, “I’ve waited long enough. I’m going to buy.” Once the price starts rising, I think you’re going to see a tidal wave, a gold wave instead of a blue wave, a gold and silver tsunami coming into the market.

Intro: Anchors in a shifting world, the strategic case for Precious Metals with Monex and CPM Group.

Sean Brazney: I was looking at the market Monday night coming into Tuesday morning, and we’ve been in kind of a down-trending market for a little while. The mood is in our market, Precious Metals industry, is when is the bottom going to be in, when is it going to turn? I saw kind of a setup on Monday night coming into Tuesday, and I actually left a voicemail for my team and said, “Guys, it’s finally time to buy.” That’s just a sales director coming in and trying to lead and get some things to happen, but I’m really curious what the data and the research says from your team and what you guys are seeing. We saw some really good lows Monday night, silver $48, I think $62 with the low. Gold was in that mid to $3,800s, and I’m wondering, is this a good place where we might see a sustained rally now?

Jeffrey Christian: We think so. I mean, you take the salesperson’s perspective. I take the research person’s perspective. A salesperson like you who has been around for a long time, you have intuition that’s based on experience, and the same is true with us, but we’re looking at the economic and political factors that drive investment demand. They’re positive for gold and silver. We look at the fundamentals of gold and silver, where we have seen over the last several months a lot of selling by some investors taking profits. That’s disappearing while the demand is starting to reappear. Then we look at the technicals, and they’re there. We had said when the price started falling after January, we said we thought the prices could consolidate in June through August, maybe around $3,800 – $4,000 for gold and $50 for silver. They did in June and July. They rose in August, despite what we had thought, or in contrast to what we thought, but then they fell in September and October. We had said we thought they would consolidate June through August and then start rising September into January. Instead, we saw the price rise in August, came down in September and October. Last week, we were saying the same thing to our clients that you were saying to your Salesforce, which was, we’re not quite sure if the price stops at $3,900 or $3,800, but we do have a very high degree of confidence that the price stops falling in the next three days, Friday, Monday, and Tuesday. We do feel very comfortable with the idea that we’ve probably seen the lows. Now, we’re seeing stronger prices today, Wednesday, the post-election.

We’re waiting a couple of days, and I think a lot of investors who have been telling us they’re waiting to see how low the price goes before they buy, I think they’ll wait a couple of days, too. At some point, someone’s going to say, “I’ve waited long enough. I’m going to buy.” Once the price starts rising, I think you’re going to see a tidal wave, a gold wave instead of a blue wave, a gold and silver tsunami coming into the market, because what we’ve seen over the last 10 months is investors around the world saying, “I still want to buy, but I want to wait to see how low prices go this year before I start buying again.” Once the prices look like they’ve stabilized, which is going to take a couple days at least, then I think you’re going to see a lot of investors, because all of the economic and political problems that have been driving investment demand for the last 26 years are still there, and a lot of them have gotten a lot worse.

We only had a $17 trillion deficit in 2000. It’s 40 plus trillion now, and the politicians back in 2000 were perhaps more inclined to actually deal with the budget deficit than the ones today. Now you’re going to have a stalemated government. It’s just going to be more problems, and those problems are going to be translated by investors into more gold and silver buying.

Sean Brazney: Every time we get a chance to talk with you, it’s great to see you bring up the fact that the things that were going on that brought us to record-setting prices are still going on, maybe a little bit different, but they’re still going on, and the reasons to buy are still there.

When I think about my 20 years of experience in this industry, there’s another sales director here over 20 years of experience. My sales team, I’ve got people that will actually talk to you on the phone, a live person on the phone, get how crazy that is. You can call in and talk to somebody that has over 30 years of experience helping people buy and sell precious metals.

We have the opportunity to have you with us on a monthly basis, probably the most experienced commodity analyst in the market. We parade you in front of everybody every month to give your insight into this. The reports that you’re doing and authoring for us on a regular basis, we’re providing for free. Just got to call up and get your free report. We have all these resources on an ongoing basis available to the people that will just call in and actually talk to a live person and request your info. We’re thankful for the time that you spend with us and the resources that you provide for us.

To remind everybody again, call Monex, talk to an account representative, and get your free reports. Thanks for being with us today, Jeffrey.