Gold and silver tend to attract attention when prices are high, with buyers moving to snap up more physical metal.
Speaking to the Investing News Network, James Henry Anderson, senior market analyst at SD Bullion, said March brought extremely high sales volumes, not just for his company, but among virtually all precious metals dealers.
It’s not impossible to buy physical gold and silver right now, but Anderson said market participants may not be able to find the products they want, or may face longer wait times. They may also encounter minimum spend levels when purchasing.
In the long term, he sees a move toward a scenario where it does become harder to buy physical precious metals.
“There’s going to come a time where bullion will essentially disappear, and the only options you’re going to be left with in terms of getting some type of allocation … to the spot price is you’re going to have to go to underperforming derivatives, unsecured derivatives — things that will not perform as well as bullion, and are not as safe as bullion,” Anderson said.
Gold and silver prices would both rise under those circumstances, but he cautioned that this will take time.
“Bottom line — the longer-term thing in terms of gold is that we’re moving into a new structure, a new system. We have to — the system’s breaking, it’s failing. It’s obvious if you look at all the trends,” Anderson explained during the interview. “It’s not happening tomorrow, it’s not happening next year, but it’s going to happen in the decade that plays out.”
While he didn’t point to exact price levels for gold and silver, Anderson did emphasize that they will go much higher.
“This is just starting. The idea that gold at US$2,000 (per ounce) is like some high, crazy price — people are nuts. If you think that’s high, you’re gold illiterate essentially. You don’t understand what game we’re playing,” he said.
Watch the interview above for more of Anderson’s thoughts on gold and silver.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.