‘Astonishing’ decline in gold price near its end as institutions run out of gold to sell, while recent buyers are mostly firm holders at any price, reckons Jeff Nichols.
by Lawrence Williams:
LONDON (MINEWEB) -
In his most recent analysis of what has been happening in the gold market, New York based long term precious metals analyst, Jeff Nichols, sees the end nigh for institutional selling which he feels has been one of the key contributing factors to the slump in the gold price over the past few months.
While definitely in the pro-gold camp, Nichols has always warned that the bull market in gold, which he feels is still basically intact and has many years yet to run, was always likely to see major corrections. However, the depth of the recent one may have taken him by surprise. Indeed he calls the fall since gold peaked in September 2011 of over 35% as astonishing’.
What his latest commentary suggests is that, in addition to perhaps contributing to moves by other parties to keep the gold price down - in part to cover a likely short supply of gold in central bank holdings due to leased gold - institutional selling has played right into the hands of those who may benefit from lower gold prices.
In the case of the ...