David Kranzler: US Dollar Crisis is Not the Only Factor Pushing Gold Higher
Tom welcomes David Kranzler of Investment Research Dynamics to the show. Dave became interested in gold and silver back in 2003 by trading futures. In 2008, he noticed the increasing amounts of market manipulation, which resulted in a significant sell-off that year.
The dollar index doesn’t explain the recent move up in gold and particularly silver. While the dollar has room to move quite a bit lower, the world still has a solid need for dollars. The excessive money printing could put a lot of pressure on the dollar, and the recent move in gold could be due to investors anticipating such a drop.
India has opened up, importing gold again after an import shut down due to the virus. Currently, they don’t seem that sensitive to the price and continue to import. The Indian public appears to be starved for it.
Many wealthy entities and individuals are taking delivery of gold. Dave believes that physical demand is the impetus pushing prices higher, and this pressure is overpowering the paper derivatives markets. If a large number of people decide to take delivery on the Comex, there could be many unhappy customers due to the excess of paper promises.
“This bull run will last as long as the central banks can keep the fiat currency gerbil on the wheel. Look at all that money they are printing as cocaine that they inject into that gerbil to keep it running and alive. At some point, that gerbil is going to collapse and die. We are in the early stages of another cyclical move higher.”
Time Stamp References:
Talking Points From This Episode
• What is pushing gold higher.
• Taking physical and demand from India.
• How the Comex discourages investors from taking physical.
• Momentum investors are starting to take notice.
David Kranzler spent many years working in various analytic jobs and trading on Wall Street. For nine of those years, he traded junk bonds for Bankers Trust. Dave earned a master’s degree in business administration from the University of Chicago, concentrating on accounting and finance. He writes a blog to help people understand and analyze what is going on in our financial system and economy: investmentresearchdynamics.com.