Jeff Nichols, Senior economic advisor to Rosland Capital and managing director at American Precious Metals Advisors Inc., He is the author of the book "The Complete book of
Gold Investing "
Jeff Nichols : "I am I am actually quite bullish I have been for long time and I remain so , all the facts we have spoken about from FED policy to central banks policy overseas to the debt situation in this country and in Europe rising demand in India and China Central Banks around the world net buyers of gold all this continue and they are likely to continue for the foreseeable future " "really the Gold market is a very small market compared to capital markets it is almost insignificant it gets a lot of attention because it hits us emotionally and certainly in certain way that other assets don't " " there is an emotional connection to gold and I can't explain why but it has been through over the millenia ,and gold distinguishes itself over the millennia. Really as the only asset that has attained its value over hundreds and hundreds of years. And I think investors look to gold for that reason; as a store of value, as a monetary asset and something that is a hedge and diversifier and insurance policy against all sorts of risks." " Well for better or worse I believe we are still in a long term bull market years ahead to run up , I think late this year we can easily see $1700/oz next year perhaps $2000/oz beyond that $3000/oz and may be even higher " " It's simply that more and more people around the world are chasing a limited supply of gold , in China for example 5 or 7 years ago it was illegal to invest in a bar of gold or gold coin , now the government is promoting it as a legitimate form of saving , China is under invested , India is under invested we are talking about billions of people as some of those people moving to the middle class and become consumers some of that money is going to go to gold jewellery some of it is going to go into gold investment and those are permanent or at least very long term purchases these aren't people who are going to sell when it rallies a little bit "
"I think you buy for the long term , ...gold and silver , silver particularly tend to be volatile assets in the short run and they have over the past few decades , in the 1970s which was a great bull market for gold we saw silver at various points in time pull back 40 , 50 even 60 percent as it was continuing to rise along the upward trend ..." " you have to be educated and you have to understand why you are investing you have to know what the fundamentals are for gold and silver and be aware that one day things will change and it may be time to start hitting positions , but I think it is important for many investors to retain as an insurance policy some small core holding may be 5 or 10 percent of investable assets in physical metal and as an insurance policy against risks that we can't even imagine " " I think (silver ) near 50 dollars it was expensive at 35 or 37 where we are today I think it is an opportunity to buy and I think gold also is an opportunity to buy , when we look back a few years from now these will seem like a very reasonable and attractive price levels to have come into the market "...." My preference is for gold because it is principally a monetary asset , silver has an industrial side it has additional risks , I think there is a place in a portfolio at times for the right mining shares , but mining shares are not physical metal and they carry a whole host of additional risks "
My Investment plan: Puts on ANF until QE3 is announced..then pile into aggressive SLV calls. As the environment gets more dangerous (SHTF), move from SLV to physical proportional to the danger and get move aggressive with SLV options. Switch from physical silver to physical gold starting at 8 to 1 silver/gold and finish 5 to 1. Then take the ride in gold. I figure in 5 years I'll have 10,000 times my original purchasing power.
Related ETFs : Ishares Silver ETF (SLV), SPDR GOld ETF (GLD) SPDR GOld ETF (GLD), Powershares DB SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), GoldCorp (GG)
