Gold Bull Market Entering New Phase

The comments below are an edited and abridged synopsis of an article by Richard Mills

Gold and silver prices have seen impressive jumps this year, with gold coming within cents of an all-time high, and silver also flirting with price levels last seen a decade ago.

Gold Bull Market Entering New Phase - BullionBuzz - Nick's Top Six
shot of a golden bull on top of coins

But the precious metals rally, according to some, has only just begun. One analyst believes it’s only a matter of time before gold surpasses double digits on its way to $12,000—$15,000 an ounce.

Adam Rozencwajg of Goehring & Rozencwajg (G&R), a commodities investment firm, said, “We think that gold has entered into a new phase of this bull market.”

G&R believes it’s time to step in, mostly due to gold demand being driven by central bank bullion purchases, which hit records in 2022 and the first quarter of 2023. The gold price relative to other financial assets is also important.

Up for discussion: Central bank buying; gold—oil ratio; silver catch-up; price target; and conclusion.

“Steady demand from central banks confirms that precious metals, in particular gold, deserve investors’ attention. Earlier this year, the gold price flirted with the record-high $2,074.60, set on March 8, 2022.”

“Experts remain bullish on gold (and silver) for the rest of the year, with a pivot in the Federal Reserve’s rate hike path acting as the next trigger.”

“Longer term, a Black Swan event such as the dismantling of the US-dollar-led reserve currency system is easily dismissed, but we have to remember a monetary policy shift is not without precedent—it’s happened three times in the last 100 years.”

“The end of King Dollar doesn’t mean the US will implode but it would probably result in a long overdue re-balancing of real assets (commodities) to financial assets (stocks and bonds).”

“Gold and gold stocks are therefore poised to do well, in what appears to be the start of the second leg of a long-term secular bull market.”