As "fear trade" is dwindling down and the old-guard investors are stepping back, the new generation is buying gold to "make money" rather than to hedge against risk, said one precious metals expert.
Christian doesn't deny the existence of "fear trade," stating that people still purchase gold and silver as an insurance policy.
This is a good change for gold, according to him, since the older type of investors are exiting the playing field.
The disappearance of the old guard is reflected in lower U.S. Mint's coin sales of gold and silver American Eagles, said Christian. But, this is countered with increasing investments into ETFs, futures and options.
The new investors are "more opportunistic," described Christian, adding that "a new gold renaissance" is on a way. "Our view has been that a secular upward shift in investment interest in gold is going to continue for many years to come," Christian said.
One of the main drivers behind this positive shift for gold is the rallying stock market, which has been controlled by the bulls since 2010, according to the precious metals expert. "Smart money sees that and says that the stock market rally has to end and it will probably end badly," he said.
Next articleIs It To Late Too Invest In Gold?