Hedge funds slash bullish wagers on gold over Trump election win
The precious metal has fallen about 8% from a record high on Oct. 31, with losses accelerating after Trump’s election victory last week.
There were spectacular gains last year and that has affected people’s expectations since most of those gains have now been given up. In the near term we will likely test support at $16 silver and $1200 for gold. The Fed has set a course of quarterly rate increases that is faster than economic growth which is a formula for stagflation and recession, when this happens investors holding gold and silver investments will do well.
Watch Interview with Brad Cooke
The US dollar and equities have been the main beneficiaries of Trump’s policies. The promises of tax cuts, immigration bans, and repealing of Obamacare have boosted equities, but Brad expects to see a rounded top on the markets and a rounded bottom in precious metals after the summer.
He examines the relationships between the dollar, equities and precious metals and why very few Wall Street investors currently have interest in precious metals. When markets begin to turn sophisticated investors will pick up some insurance in the form of gold and silver. Silver will continue to make gains and ultimately the targets are multiples of the current price. Expect to see a move up in gold and silver in the fourth quarter of this year.
Mr. Cooke talks about Endeavour Silver and why the stock is currently at appropriate support levels. They are now in a market with rising prices, so are focused on building with construction starts at their El Compas and Terronera projects in Mexico.
Talking Points From This Week’s Episode
• Near term expects gold and silver to hover around their support levels.
• Expects Gold and silver to move up in the fourth quarter.
• Fed rate hikes could bring stagflation and recession.
• Sees a dollar decline later this year.
Mr. Cooke began his career as project geologist in 1976 managing mineral exploration programs for uranium, base metals and precious metals across Canada with Noranda Mines, Shell Minerals and Chevron Minerals. He later owned and operated Cooke Geological Consultants Ltd., discovering several high grade gold vein deposits. In 1988, Mr. Cooke launched Canarc Resource Corp., a junior gold exploration and mining company focused on exploring and developing prospective gold properties in the Americas. Mr. Cooke founded Endeavour Silver Corp. in 2003 for the purpose of acquiring high-grade silver-gold projects in Mexico. Since that time, the Company has acquired, rebuilt and expanded three silver-gold mines, making Endeavour Silver today one of the world’s fastest growing silver mining companies.
