Whale Watch: What The Big Hitters Think Of Precious Metals Now…

| April 26, 2013 | 0 Comments

silver & goldA lot of investors are talking about the recent trading action in gold and silver…

Why so much attention on this subject?

Well, quite simply, what’s happening with the precious metals markets right now is nothing short of extraordinary.  As you’re likely aware, the price of gold and silver have essentially crashed over the past two weeks.

Take a look…

gold & silver

As you can see, gold dropped from $1,600 to $1,350- a 15% drop, while silver plunged from $28 to $22.50 – a 19% wipeout… all within the past two weeks.

Of course, this begs the question…

Can precious metals erase their recent losses and return to their high flying ways?  Or are gold and silver destined to continue their downward slide?

I’ve told you my price outlook in recent articles.  However, it’s always a good idea to see how the ‘whales’ of the commodity world are positioning their portfolios.

First, let’s hear from famous commodity investor Jim Rogers

In a recent interview in Singapore, Mr. Rogers said that he is still bullish of gold in the long run.  But he adds that he won’t buy the yellow metal until it reaches $1,300 an ounce or lower. 

“If it goes to $1,300, I hope I am smart enough to buy some… If it goes lower to $1,200, I hope to buy even more. If… that’s not a prediction.”

As you can see, Mr. Rogers makes it perfectly clear, he’s a buyer of gold at $1,300 and lower.

And what about hedge fund manager John Paulson?

Well, I don’t know if you’ve heard, but Mr. Paulson is having what I would call a bad month. According to analysis by Bloomberg, Paulson is thought to have lost nearly $1 billion thanks to gold’s recent downfall.

Are losses like that enough to make him throw in the towel on the yellow metal once and for all?

Not hardly…

Mr. Paulson is reported to have got long gold years ago, when the yellow metal was still under $1,000 an ounce.  So he’s not underwater on this trade yet.  And according to an investor conference call this week, the hedge fund titan is sticking with his gold guns.

He still thinks the yellow metal is going to be the ultimate hedge against soon-to-be rampant inflation.  And while he says the price will remain volatile, he’s confident the metal will return to higher prices.

And what would a precious metals article be without mention of Eric Sprott?

As you may know, Mr. Sprott has been an outspoken silver bull for many years.  The Canadian fund manager even went as far as to form his own physical metal backed ETF- the Sprott Physical Silver Trust (PSLV).

In a recent interview that can be found on his blog, Mr. Sprott says physical shortages, along with international bank runs, will ultimately drive gold and silver dramatically higher.  In fact, he still insists gold will trade north of $1,900 by the end of this year. 

And for silver, well, he says the lustrous metal will outperform gold by a factor of 10 to 1!

So, even through bears are currently roaring in the precious metals markets, long-time bulls are still ready for a run at higher prices.

Now that you’ve heard from a few of whales of Wall Street, will you be a buyer of the metal or a seller?  Feel free to write in and let me know your thoughts on the subject.  Our email is [email protected].

Until Next Time,

Justin Bennett

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Category: Gold, Precious Metals, Silver

About the Author ()

Justin Bennett is the editor of Commodity ETF Alert, an investment advisory focused on profiting from the ebb and flow of important commodities via ETFs. The commodity veteran and options specialist is also a regular contributor to the Dynamic Wealth Report. Every week, Justin shares his thoughts with our readers on a variety of commodity-related topics. Justin is also a frequent contributor to Commodity Trading Research’s free daily e-letter. And he’s the editor of another highly successful and popular investment advisory, the Options Profit Pipeline.