There's an increasing level of fear both in the US and worldwide. The Fed was looking for the administration to get another fiscal package to help move things forward. Economic data has been relatively benign. In Europe there's fear of another Covid wave. Peter doesn't expect the economy to shut down and he doesn't expect the Congress to do anything either. So it's highly doubtful that another stimulus package is coming. And the market has reacted accordingly. The Fang stock correction should have led to a rotation into other sectors. The resulting anxiety has led to a rush to cash. Peter went neutral/negative about a month ago. Two elements in the metals markets, one is raising cash by investors who had large profits and the fear trade is in full force and they're moving into cash away from metals. Metals get hurt in a financial collapse until there's governmental intervention. The market is hooked on continuous infusions of stimulus and pulling it back will cause nasty withdrawal pains. There's no cohesiveness in government at all. Peter is sticking to his end of the year gold price estimate of $1911, but it could be low. We have not seen the high on gold yet in this wave.
Peter Hug has been involved in precious metals since 1974. He began gaining first-hand investment industry experience at Deak-Perera. He served as SVP at Guardian Trust Company, which became one of the largest international trading houses for precious metals. He developed the first precious metals certificate program and the first margin trading accounts for metals on the cash market. Peter has acquired extensive experience in the wholesale markets and international asset diversification. A frequent speaker at precious metals conferences and in the financial media, he is one of the handful of experts who have succeeded through multiple bull and bear cycles on the strength and skills honed during the dramatic fluctuations of the 1980s. As the Director of Kitco's Precious Metals Division, Peter develops newer and better investment options for Kitco customers.