(Kitco News) — While gold prices are well supported, silver’s time to shine is likely in the latter part of the cycle, said Florian Grums, general manager of Midas Touch Consulting.
Last week, Grummes spoke with Kitco Mining at the Deutsche Goldmesse in Frankfurt.
Gold prices rose 1% after a weaker-than-expected inflation rate earlier this month. The U.S. Labor Department said the highly anticipated consumer price index rose 0.4% last month, following a 0.4% rise in September. Economists expected an increase of 0.6%. The broad market also posted its biggest rally in two years, with the S&P 500 up 5%.
With good inflation numbers, the US dollar should have weakened in favor of gold.
Grooms said some other factors supporting gold are central bank buying and the general market.
“I don’t see many downsides,” Groomes said.
While gold has risen, Grums notes that silver has lagged.
“Silver always comes later in a bull market for precious metals, so the really good times for silver usually come in the last quarter of a bull market, so I guess until you see a rally,” Groomes said. Until then, it will take a while.” ,
Deutsche Goldmayse’s coverage of Kitco Mining was sponsored by Faraday Copper.
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