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BookmarkI had the opportunity yesterday to reconnect withBron Suchecki, head of analysis and strategy at The Perth Mint Australia.
It was a brief but fascinating interview, as The Perth Mint refines 10% of world gold production and stores over $2 billion dollars worth of vaulted precious metals on behalf of clients.
When asked about the recent trading action in the markets seen by The Perth Mint, Bron noted that ‘strong hands’ remain firm in their holdings, while the, “People who’ve been selling…[mainly] bought for the wrong reasons…they bought more for the speculative, ‘get rich quick’ type of motivation…[and] that’s not a very strong reason for buying and holding gold. So they’re out of it. Those that bought for insurance…they’re holding gold…in case things get really bad and start to unravel.”
“[But] those weak hands are coming out now,” Bron further added, ”because they were never really committed to gold in a real, strong sort of intellectual sense.”
While a continued challenging time for those holding or considering the precious metals, Bron affirmed that, “If you’re 100% sure that central banks and governments have everything under control, and everything’s going to be great moving forward, with no problem from here on out…then don’t hold any gold. But if you’re not 100% sure…that’s why you should hold a bit.”
As a final comment in addressing quantity and allocation percentages, Bron said, “How much gold you should [own] depends on how much confidence (or lack of confidence) you have [in the system].”
