Tom provides a new update on central bank gold buying and what is taking place in the silver market. Tom discusses how central banks purchased a record 630+ metric tons of gold last year, and he sees continued strong buying as China and Russia diversify away from U.S. Dollar assets.
According to the data that Tom is looking at as of March, central banks are on track to purchase over 800 metric tons of gold. He says, “What do central banks know that we don’t?” Tom goes on to say, “why are central banks purchasing so much gold… do they believe it will be apart of some new currency reset or gold-back currency?”
Furthermore, Tom believes the U.S. Dollar will lose a great deal of value during a reset. And, if you own most of your wealth in U.S. dollar assets, you could take a big haircut, which is why it is wise to hold a portion of your wealth in the precious metals.
Tom explains what he heard in a meeting of precious metals wholesalers that the gold-silver ratio might go back up to 100+/1, because of the current big demand for gold by central banks and large investors. Even though the wholesalers believe the gold-silver ratio could go to 100/1, the need for industrial silver in electric cars, etc. will overwhelm the silver market.
Tom also hears that at some point, JP Morgan will go long silver which will put it back into another bull market. We must remember, silver is trading close to its low versus the overall markets which are closer to their highs. When the stock market suffered a big correction back in December, the gold and silver prices shot higher. So, I don’t believe we are going to see silver fall much during the next market crash. Rather, I see silver disconnecting and heading higher with gold.
Tom Cloud has been in the precious metals business for 43 years, since 1976. He has a lot of experience in the precious metals industry and understands the gold and silver market better than most dealers in the industry.
If you are new to the precious metals market and had questions, Tom Cloud would be happy to answer any questions.
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