Rosland Capital on Gold and Other Precious Metals

Limited Edition Coins Launched as part of ’40 Years of Williams’ Celebrations 

Late last month, Rosland Capital unveiled a special silver and gold coin collection in commemoration of legendary F1 racer Ayrton Senna. The limited edition coins were unveiled at the 2017 Formula 1 Monaco Grand Prix.

The big surprise in the world of gold thus far this year has been the metal’s lack of price volatility. 

Surprise, surprise! Despite last week’s move by the U.S. Federal Reserve, America’s central bank, to tighten monetary policy a notch, gold prices surprised many observers of and participants in the gold scene, even those who had expected the quarter-point increase in short-term interest rates would be sufficient to knock the metal into a still-lower trading range under $1,200 an ounce.

Gold prices of late have been testing support just under the market, if you will, preparing for a healthy rally into higher territory.

As I see it, a relatively small group of hedge funds and institutional speculators have been calling the tune for gold, trading the recent range, buying on dips, selling on rallies, and gradually adding to their physical holdings – a behavioral pattern we expect will continue within a rising trading range – at least until a price well above the $1300 an ounce level is established.

Contributing to support under the market, price-sensitive Asian traders continue to bottom feed, accumulating bullion for the billions of gold-friendly households in their region with cash to spend.

Meanwhile, short-term hour-to-hour and day-to-day price action has been governed by the latest news with respect to interest rates, inflation, the dollar, and President Trump’s issues in the White House. 

Gold bulls, ourselves included, have suffered a disappointing year. Rather than ending 2016 on a strong note, the biggest surprise to many was the failure of gold to surge higher in the wake of Donald Trump’s election as the next president of the United States.

For a moment, as the polls closed on Election Day, we thought Trump’s victory would create the sort of uncertainty upon which gold typically thrives. Instead, contrary to expectations, Wall Street has since zoomed to new all-time highs and gold has disappointed fans of the yellow metal. 

Contrary to our expectations and nearly everyone else’s who pays attention to the price of gold, the yellow metal has, since Election Day, shed nearly 15 percent of its value in U.S. dollars.

The Abu Dhabi Grand Prix marked the end of the 2016 FIA Formula One season. Rosland Capital and CEO Marin Aleksov were there to present the newest gold and silver coins of the Officially Licensed Formula 1 Coin Collection.

Rosland Capital's Jeffrey Nichols spoke with Chris Waltzek of GoldSeek Radio last week with insights into the impact the presidential election would have on financial markets and gold.

Of course, elections matter. But regardless of who moves into the White House this coming January, gold prices are set to zoom in the years ahead – in my view, more than doubling during the next President’s term.