Just another report that comes into the in tray.
What i find interesting here (aside from the content of the report) is that the finance sector are significant laggards to the pm bull run. There has been almost no finance participation in this run to date. In spite of the trend the percentage of funds invested in pms remains at historic lows vs the recent (recent here = last thirty years or so) run up in the world wide money supply. Recently, pms are starting to get more attention from the finance community. They can no longer be ignored, it seems.
The inflation trade is busy but the pm trade is not, is my observation. The more reports from finance houses like this one the greater the chance pms could see significant inflows of capital with the upside potential to price this infers. Silver is a very small physical market. I strongly maintain my stance to retain a core position and add leverage on price confirmation. Of course this is just my opinion and must not be understood as financial ‘advise’ in anyway.
This para from Erste Group. Report attached.
‘In the short term, the seasonality of the gold price seems to suggest the continuation of thesideways movement, followed by the strongest seasonal period in September. In the long runwe could see a future where rather than asking for the price of gold, people will muchmore often ask for the price in gold. Our next 12M target is USD 2,000. We believe thatthe parabolic trend phase is still ahead of us. This phase should take the gold price to our long-term target of at least USD 2,300 at the end of the cycle’.
Rich
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