Final Washout For Gold Before Brighter Outlook; Silver a Great Bet - Vince Lanci | OUTLOOK 2016

The second half of 2016 may be positive for gold but the metal will first need to see a final wash out, said Vince Lanci, Managing Partner of Echobay Partners. Speaking with Kitco News on Tuesday, Lanci described gold as the tallest ‘pigmy’ in the commodities space, especially when compared to crude oil. ‘I think there could be another final washout to get the last longs out -- before the market has a chance to bottom and start its rise up in the second half of 2016,’ he said. On the topic of the recent U.S. Fed rate hike, Lanci said that the central bank will ‘regret’ its decision and it be would ‘suicidal’ to the U.S. economy if the Fed would tighten further in 2016. ‘It would be disruptive to the stock market -- they need to keep the stock market propped up. The world is lowering rates; Canada will have negative interest rates… [T]hey cannot continually raise rates without damaging us,’ the 25-year trading veteran explained. Lanci also expects the U.S. dollar to remain strong until mid-2016, ‘you will see inflation creep in and I’m already seeing it in housing rentals.’ Heading into the new year, Lanci said that he is still a big believer in silver. ‘Silver is the volatile cousin of gold, you experience more heartache owning silver than gold. But if you look at it over the years, silver outperforms gold in rallying markets. Because there is a decrease in production in base metals, there is a decrease in the excess by-product of silver.’ Kitco News, December 23, 2015.