Jeffrey Nichols

Future of Gold Looks Bright

Late last month, gold and silver prices saw new highs. On February 23, anxiety of the new U.S. president and his administration’s new policies caused prices to hit a 3.5-month high.

The momentum continued over the next few days, pushing gold and silver slightly higher in anticipation of President Trump’s speech to the U.S. Congress about his plans for growing the country’s economy.

Managing director of American Precious Metals Advisors and senior economic advisor to Rosland Capital, Jeffrey Nichols, was interviewed about his insight on the recent jump in prices and outlook of precious metals. Here are a few quotes from him:

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In recent weeks, with gold trading in a narrow range and good technical support apparent to all, perceptions of momentum have also shifted and today traders just didn’t want to lose out — or bet against —  a rising market.

Additionally, there has also been a positive shift in inflation and inflation expectations offsetting the expected rise in interest rates. In other words, real ‘inflation-adjusted’ interest rates are falling, and this is — and will continue to be— a big plus for the yellow metal.

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Gold has a bullish posture considering the metal has been able to rise despite a bearish factor — expectations for higher U.S. interest rates this year.

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In my view, an accelerating U.S. consumer-price inflation rate will outpace any increase in nominal rates brought about by the Fed – a trend that will contribute to record high gold prices in the next few years.

Stay up-to-date on precious metal prices with Rosland Capital’s gold and silver price historical charts. You can also head over to Rosland Capital’s products page to view gold and silver coins.

Rosland Capital Review from Jeffrey Nichols

Rosland Capital’s Senior Economic Advisor Jeffrey Nichols offered an honest review of Rosland Capital this year and lays out why he chose to work with the company. With Nichols, it’s all about trust.

“One thing I’ve learned, above everything else, is that the gold business – from the largest bullion dealer to the “mom and pop” coin shop is built on trust, integrity, and personal relationships.

Companies that don’t value these business principles come and go. Meanwhile, companies – like Rosland Capital – do well by doing good, by putting their client needs first.”

Read the full review of Rosland Capital.

Jeffrey Nichols on Fox Business

Rosland Capital Senior Economic Advisor, Jeffrey Nichols, recently appeared on Fox Business to advise viewers on how to incorporate gold into their portfolio. Gold investments serve as an insurance policy against risks that other investments are subject to including, the stock market, currency and inflation. Nichols also discusses the many additional reasons why now is the time to invest, and how you can do so intelligently.

You can watch the full interview on Fox Business.

Jeffrey Nichols: Gold – Two Sources of Prospective Price Recovery

Jeffrey Nichols, Senior Economic Advisor to Rosland Capital comments the gold-market over the past few weeks and outlook for investors.

“Over the past few weeks, the financial market’s assessment of prospective U.S. monetary policy has continued to weigh heavily on the price of gold. It all began in mid-March when Fed Chair Janet Yellen suggested U.S. short-term interest rates might begin their next ascent in mid-2015. Contributing to expectations of higher interest rates next year has been the recent improvement in a number of U.S. economic indicators, suggesting the recovery is gathering sufficient momentum so that the Fed can continue its policy of tapering, in other words weaning the bond markets from a continuing infusion of liquidity.

As a rule, rising interest rates are a negative for gold, representing the “opportunity cost” for holding the metal . . . and although higher rates are still at least a year away, expectations alone have been enough to weigh on today’s price.

In my view, the economy remains anemic – and will continue to underperform for a very long time to come, suffering from what some economists have labeled “secular stagnation.” The household sector cannot fund a recovery in consumer spending because it remains overly indebted and underemployed while much needed government spending is politically impossible.

It will soon become apparent that the recent statistical improvement is nothing more than a bounce back from the past winter’s weather-induced economic chill. As this pessimistic view of economic prospects takes hold, the markets will re-assess expectations of Fed policy – and this should be a big plus for gold.”

To read the full article, visit Rosland Capital’s News Page.

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Trends in Gold Demand

“Jeffrey Nichols, Senior Economic Advisor to Rosland Capital (www.roslandcapital.com), had the following comments on the current gold-market situation and outlook:

I’ve been surprised by the recent decline in the price of gold.  I expected a stronger finish to the first quarter with gold somewhat higher – possibly even breaking out above the $1,400 an ounce level by the end of March – but this will now have to wait.

Two recent developments shifted trader expectations and triggered the recent round of selling:

First, Russia’s annexation of Crimea failed to provoke any serious response from the West.  Neither the United States nor the European Union reacted with any serious economic or political sanctions . . . and the outmanned Ukraine military has stood down, avoiding a shooting match with Russian forces.

Second, expectations of future U.S. Federal Reserve policy also shifted.  The Fed’s announcement following its late-March policy-setting meeting that it would continue to “taper” its monthly bond-buying program with another $10 billion reduction in April purchases was widely anticipated. ”

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Jeffrey Nichols: Russia Driving the Price of Gold

In a new post on Rosland Capital’s website by Senior Economic Advisor, Jeffrey Nichols, he discusses Russia driving the price of gold amidst the situation in Ukraine.

Russian saber-rattling sent gold over $1,350 an ounce earlier this week, its highest price in four months. But, contrary to many press reports, it was neither safe-haven demand nor physical buying that fueled gold’s short-lived price advance.

Instead, it was institutional speculators and short-term traders – among them the trading desks at some of the gold-dealing banks – who rushed reflexively to buy gold futures and other “paper gold” derivatives . . . and then sold quickly to take profits as the crisis seemed to abate.

Meanwhile, buyers in China and India, the two largest physical markets in the world, continued to dance to their own market fundamentals, virtually ignoring the geopolitical drama unfolding in Europe.

It was the risk of war and the possibility of Russian troops storming into the Ukraine that triggered the rush into paper gold . . . and it was Russian President Vladimir Putin’s assurance that there would be no imminent invasion that led to swift profit-taking and a quick price decline back to the $1,330 area.

If Russia resumes its saber-rattling, the Ukraine situation may continue to drive the gold price in the days immediately ahead.

We are reminded just a little bit of gold’s glory days when the metal’s price served as a barometer of global geopolitical anxiety – but, so far, the rise in anxiety has been rather muted . . . and so, too, has been the past week’s rise and fall in the gold price.

There is certainly the potential for the crisis in the Ukraine to flare-up again – bringing with it, another round of dramatic gold-price action.

Click here to read the whole post.

Marin Aleksov is the CEO of Rosland Capital.