Even Bulls Get Stampeded by Gold’s Best Quarter in Three Decades
Gold’s been on such a tear, even the bulls got left behind.
“Absolutely no one saw this coming,” said Ross Norman, chief executive officer of bullion dealer Sharps Pixley, who began his gold career at refiner Johnson Matthey Plc more than 30 years ago. “Forecasts made at the start of the year were out of date within weeks.”
Gold for immediate delivery jumped 16 percent in the first three months of the year, the biggest quarterly surge since 1986, according to Bloomberg generic pricing. The price of $1,231.37 an ounce as of 8:24 a.m. in London is above all 31 forecasts for the average for 2016 in a mid-January survey by the London Bullion Market Association.
Investors, defying the timid forecasts, began piling in during January, with gold held in exchange-traded funds growing for the first time in about a year. Purchases subsequently accelerated, with investments rising for all but ight days during the quarter.
Only those with the longest memories have seen anything like it.
Jeffrey Rhodes, who’s been trading gold since 1978 in a career that’s taken him from New York to London and Mumbai to the Middle East, is one who has.
Now the CEO of Zee Gold DMCC in Dubai, Rhodes recalls how a crash in oil prices in 1986 as U.S. oil magnates fought a price war with Saudi producers set off a huge jump in bullion prices.
“I had my best ever month in 1986, so it was pretty clear in my memory,” said Rhodes. “I saw parallels emerging earlier this year.
Big Al says: “All of the folks on this site are aware of what has happened so far this year. It is important to realize that it is starting to go mainstream and what that could mean.”
GOOD ONE………….HE needs to read the NOTES FROM DEC 2015………
Hi farmer! I think you will find this very interesting!
http://www.telegraph.co.uk/business/2016/03/28/barclays-warns-of-a-rush-for-the-exits-on-commodities/
Thanks Don. I am in agreement with Barclays on that call. What we have seen in the first quarter of this year is just an anomaly for the resource markets due to its sharpness. It was technically perfect in my books though and a downturn should now be anticipated. Crude oil in particular is set for a healthy reversal as the Canadian dollar peaked today.
What about the base metals – copper, iron, coal? Any thoughts?
Personally, I see them heading back down. Whether this will be a sharp downturn over 5 to 10 or a long, slow all summer grind-down I am not sure.
Of course, they could all shoot for the Moon next week.
My dearest BIG AL….You know you are my bestest buddy , & I love you oodles , Please Pretty Please could you buy this for my birthday..Lots of kisses & hugs your most affectionate & loyal buddy….Tony..XXXX HUGS XXXXXXXXXXXXXX
http://news.goldseek.com/GoldSeek/1459428453.php
“Absolutely no one saw this coming,” said Ross Norman, chief executive officer of bullion dealer Sharps Pixley, who began his gold career at refiner Johnson Matthey Plc more than 30 years ago. “Forecasts made at the start of the year were out of date within weeks.”
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Wow, just one paragraph into the article and I could not stop laughing. What the hell does he mean nobody saw this coming? Obviously Ross does not read the Korelin Economics Report where yours truly not only predicted the price surge but also put a price on its peak that I initially estimated as a 17% jump to 1220 USD. Gold in fact surged more than 50 dollars higher then my early estimate but the pattern was crystal clear and so that was a bullseye as far as predictions go. And while that forecast probably sounded preposterous at the time it was made in early December I can tell you that I was exceptionally confident at the time I would be correct. And I said so back then to pretty much zero fanfare. I think one guy answered those posts of mine. That’s how much doubt existed. Anyway, Ross ought to tune into the show more often. There are indeed many here who have developed expertise in gold markets. I am but one of those people.