Is the shine returning to precious metals?: Charles Oliver

Summary: Senior portfolio manager for Sprott Investment, Charles Oliver, explains in an interview why he believes the gold market has bottomed and could top $2000 next year. He explains how “valuations” are relatively cheap and how currency debasement is occurring on a worldwide scale. He compares the pullback from $1921 to $1180 that has occurred since August 2011 as reminiscent of a 50% pullback between 1974-1976. From ’76 to ’80 though, gold shot up from $100 to $850. As far as silver, Oliver expects it to outperform gold in the next 5 years. Historically, the gold:silver ratio has stood at 16:1 about 90% of the time. At its current ratio of 60:1, silver would have to increase four fold to reach that norm. Oliver explains that he expects that to occur in the next few years, which will mean an explosion in silver prices. Read the full interview for more on gold, silver and platinum-group metals, as well as miners. Read more…

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