Chris Blasi: Fed Policy to Drive Precious Metals in the Near Term
Chris takes a long term big picture view of the precious metals. We are in a secular bull market than began in 2001, they normally run 20-25 years. This first leg went from 2001-2011, the second leg which was a pullback went from 2012 to the end of 2015, in January of 2016 we began the third leg. There are a number of geopolitical events coming that should result in a robust bull market.
The global economy has not been allowed to correct since 2010. The Fed has continued to pump up new bubbles in both housing and banking. The system will break at some point, many analysts recognize this. We are being setup for a monumental pullback in the not too distant future.
All the currencies of the world have the same underlying problems as the U.S. Dollar There could be short term price pressure if the dollar rallies but the trend indicates that gold will win out.
The PMC index ounce provides a smoothing out of the precious metals pricing, it’s weighted in a very logical way. It contains a balance of four different precious metals. The client buys and sells on our exchange and the depository handles the bullion in the clients name. Allocating and deallocating correspondingly. All of it is confirmed by the depository, which eliminates much of the risks of traditional ETF products.