by Michael J. Kosares
We are now wrapping up one of the stronger summers in memory at USAGOLD and heading into the strongest time of year seasonally for gold and silver – September through February. Normally the summer months are the quiet part of the year, but 2016 has been an exception. The price of gold is up 9% since the beginning of June and silver over 18%. ETF gold inventories reached highs in July and August not seen since 2009, the year after the collapse of Lehman Brothers and the launch of the so-called credit crisis. Some see the stronger than usual summer showing for the precious metals markets as a harbinger of things to come.
Credit Suisse, for example, forecasts gold will be trading in the $1475 range in the fourth quarter of 2016, and see $1500 in the early part of 2017. Similarly, Deutsche Bank’s commodity desk believes gold should be trading now in the $1700 range based on the top four central banks’ aggregate balance sheet expansion – some 300% since 2005.