Peter Grandich: When Gold Breaks From This Base, It Will Trigger A Stampede Of Momentum Buyers

In a recent interview, Peter Grandich of "The Grandich Letters" gave a sober outlook on the junior resource market, warning of a frightening class-warfare to arrive shortly in the US. Grandich also indicated gold and silver are in a stealth bull market and will soon break from their base.

By Tekoa Da Silva
January 25, 2013
Bull Market Thinking

I had the chance this week to reconnect with Peter Grandich, publisher of “The Grandich Letter,” for a powerful new interview. Peter has been issuing major market calls with tremendous accuracy for decades now, beginning with the 87′ market crash, and more recently calling the 2009 stock market bottom.

During the interview, Peter gave a sober outlook on the junior resource market, warned of a frightening class-warfare to arrive shortly in the US, and spoke on which key market will trigger a collapse making 2008 look like just a warm-up.

Peter also spoke on gold and silver, indicating, Peter Grandich“It’s a stealth bull-market…what I mean by that is, never in 30 years in this business could I say a market could have risen as much as they have, and still see so few net participants in it…Go to any financial institution in any part of the country and look at any 100 accounts, and you won’t find 1 out of 100 that own physical metal—the bulk of the buying net-net, has been outside of the United States.”

When asked about this excruciating consolidation period for many investors, Peter explained that, “They [the metals] have digested a decade’s worth of large gains, they’ve built a very strong base…as tough as it is for somebody to struggle with it, the longer the base is built, when the inevitable breakout to the upside comes, the bigger that move can be. I believe that move is coming this year. When it does, we will see a momentum flow into gold that we haven’t seen in years. So many technical buy signals will be triggered by that, and pure momentum players who really don’t care about the fundamentals of the story…will flow into the metals.”

“Everyday somebody sends me an article, predicting the end of the gold bull market. Those are the type of things that I like to hear because, the fact that we go sideways despite this onslaught of negativism, tells me the market still wants to go higher.”

“[And] with the German repatriation of gold, we’re probably in the early stages of a gold backed currency,” he added.

The chief priority for investors during this period Peter explained, is capital preservation. “Safety of principal is going to be key,” he said. “It’s not going to be how much you make in the next few years, it’s how much you don’t lose…which you will then use to take advantage of assets which have dramatically dropped down in price.”

Once again, this was a powerful interview with one of the most successful “common sense” investors of our time. It is required listening for investors and serious market students.

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