“Now we’re seeing gold coming back into the system to replace some of the bonds being held by sensible banks and this shows this is a major trend,” Middelkoop said.
“According to our analysis, we’re in a very early part of a generational boom market in commodities. We’ve been victims of this very long bear market for so long that we can’t even imagine a bull market which will go on for years or even decades,” he said. “If you look at the perfect storm developing out there for commodities, shortages are arriving in many of the metals, geopolitical fights over them. You have the debasement of the currencies.”
Silver is poor man’s gold
Middelkoop is betting on silver, as there are more industrial and monetary demands, as well as investment flows.
“I’ve grown my personal silver position in the last two weeks because I think silver is a steal. Silver made a perfect technical retracement towards the breakout level around $55. And I wouldn’t be surprised to see silver moving back up to $100 over the next few months or quarters,” he said. “And I wouldn’t be surprised that my long-term target for silver is $500 and not $100.”
With gold trading around $5,000, Middelkoop said it should be no surprise if silver starts trading around $500.
“We always know that silver might not lead the rally, often gold is in the lead. After silver broke out over $30, only less than two years ago, we had this very quick run towards $50, then to $100, and we even reached $120,” he said. “It shows silver can be the fastest horse in the metal race.”
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