Impact of central bank buying on gold

Stijn Schmitz welcomes Florian Grummes to the show. Florian Grummes is Founder & Managing Director of Midas Touch Consulting. In this comprehensive interview, Grummes provides an in-depth analysis of the current precious metals market, focusing on gold, silver, and broader economic trends. Grummes argues that the fundamental driver of the precious metals bull market is the ongoing destruction of fiat currency’s purchasing power through continuous money printing. He believes we are in the “end game” of the current monetary system, with central banks forced to continuously expand the money supply to prevent economic collapse. This process is leading to significant inflation and eroding people’s trust in traditional currencies.

Regarding gold, Grummes sees a bullish trajectory, with potential targets ranging from $5,000 to potentially $15,000. He notes that gold has been in a secular bull market since 2001 and is now accelerating. The recent price action, including central bank buying and physical demand from countries like China, supports this optimistic outlook. He anticipates “real fireworks” in January, with a potential move towards $5,000.

Silver is even more exciting for Grummes. After breaking the critical $50 resistance level after 45 years, he believes silver could reach $72 in the short term and potentially $100 or higher in the coming years. He describes silver’s current movement as a “violent” breakout with significant upside potential.

The discussion also touched on other precious metals like platinum, which Grummes considers undervalued, and emerging trends like tokenized precious metals. He sees tokenization as a potential future for more liquid and transferable metal investments. Regarding mining stocks, Grummes believes there is still significant upside, particularly for larger producers and junior miners. He advises patience and buying during dips, noting that the best is yet to come in the sector.

Timestamps:
00:00:00 – Introduction
00:01:04 – Christmas Rally Drivers
00:02:36 – Bull Market Fundamentals
00:04:44 – Fiat Currency Destruction
00:13:44 – Hyperinflation Proximity
00:15:41 – Central Bank Buying
00:19:55 – Gold Short-Term Outlook
00:23:50 – Crack-Up Boom Thesis
00:27:00 – Silver Price Targets
00:32:10 – Platinum Investment Case
00:35:44 – Tokenized Precious Metals
00:41:14 – Mining Stocks Opportunities
00:47:52 – Oil Sector Potential
00:51:34 – Concluding Thoughts

Guest Links:
Website: https://www.midastouch-consulting.com
LinkedIn: https://www.linkedin.com/in/floriangrummes/
X: https://twitter.com/FlorianGrummes
Substack: https://substack.com/@midastouchconsulting
Seeking Alpha: https://seekingalpha.com/author/florian-grummes
Telegram: https://t.me/MidasTouchConsulting
Facebook: https://www.facebook.com/Midastouchconsulting
Free Newsletter: http://eepurl.com/d5Euf

Florian Grummes is an independent financial analyst, advisor, consultant, mentor, trader & investor as well as an international speaker with more than 30 years of experience in financial markets. 
 
Florian is the founder and managing director of his company Midas Touch Consulting, which is specialized in trading & investments as well as consulting, analysis & research with a focus on precious metals, commodities and digital assets.

Via Midas Touch Consulting he is publishing daily and weekly gold, silver, bitcoin & cryptocurrency analysis for his numerous international readers. Florian is well known for combining technical, fundamental/macro and sentiment analysis into one often accurate conclusion about the markets.