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Bull market hasn't hit yet - Paul Walker, GFMS
[miningmx.com] -- GOLD and platinum have both hit 25-year highs in the last few weeks and according to GFMS CEO Paul Walker investors need to be wary and look at how many above ground precious metals are making their way back into the market before they invest.
“The above ground supply of metals is important. Investors need to take into account what is being recycled and coming back into the market,� said Walker.
He was speaking on the business show, Investing 101 broadcast on Radio 2000.
Walker warned that the recycling of autocatalysts, such as palladium and platinum, used in the making of cars, could constrain the price of the metals. This was particularly the case with palladium. Recycling could constrain metals pricesGold however is not as susceptible as most of the above ground gold was in jewellery, but in India investment in coins and small gold bars is growing and causing some to melt down their jewellery said Walker.
When asked about where the price of gold was headed Walker forecast that the bull market had not yet “kicked in� as there had not yet been any large interest from the retail market.
“When I get retail investors knocking on my door that’s when I know that the bull market will kick in… and that’s when you have to know when to pull out. I don’t think the actual bull market has hit yet.�
