Why Gold is Suddenly Taking Off

Gold and silver are climbing rapidly as trust among nations deteriorates. A weak US dollar plus runaway national debt are some other big concerns. How much of this move in precious metals is safe haven demand versus structural long-term drivers?

I think both of those things are actually a bit related, but before I go into that, I should mention we've just had two days where there's been a massive correction in those steep runups. Silver this year was on a tear. It was up 63% a few days ago. It's plummeted about 30%. Gold about 13% as of just the last two days. But I think that the long-term drivers that you mentioned are still in place. And I do think they're related.

I mean I think some of this safe haven demand and fear is a reaction to the structural things that are happening in the world. What we've had over the last couple of years is central banks aggressively buying gold. That may have tapered a little bit, but they're certainly not out there selling their gold and there are still purchases going on. But I think investors are also just reacting to just so much uncertainty even when the stock market is climbing.

We're at all-time highs and there's just policy reversals and new things that we haven't seen in our lifetimes taking place. And we have the dollar somewhat declining coming off of all-time high or not all-time highs but coming off of high levels and you know just a lot of policies that concern people. So I think that those things are connected and I think that the fundamentals for gold at least is there and silver usually keeps pace with gold and sometimes as you get into far into a rally silver takes off platinum as well and that's kind of what we've seen.

We've seen some steam come off. But I think it could be choppy for a while, but looking ahead, there's still some significant upside there.