Tim Marschner warned of a potential ‘Trump Slump’ in bullion buying activity.
A sense of unease has settled over the precious metals market, with some dealers observing a slowdown in bullion purchases – a phenomenon dubbed the “Trump Slump” by some observers. Tim Marschner, a veteran precious metals dealer featured in a recent interview on Yankee Stacking, believes this lull may be temporary, but warns investors to remain vigilant.
“Until this Administration changes over, there aren’t many people buying much of anything,” Marschner stated, attributing the sluggish market to a combination of factors, including high inflation and a general sense of uncertainty. “People are being more responsible only because after you know the last four years they realized that you got to pay attention to the value of your money and what things are costing you,” he added, highlighting the impact of rising living costs on consumer spending.
Marschner, who has a long history in the industry, emphasized a crucial distinction for investors: “Precious metals are not and never will be an investment,” he declared, “It’s you know just something you have in reserve that you may need some time.” This perspective underscores the importance of viewing gold and silver as insurance or a hedge against economic instability, rather than solely as a vehicle for short-term profit.
Despite the current market lull, Marschner believes the potential for significant price appreciation remains strong. “Gold should be a lot higher – thousands, 4,000, 5,000, 10,000 – to compensate for the inflation,” he stated, acknowledging the significant gap between current prices and inflation-adjusted historical highs. This suggests that a significant price correction could be on the horizon.
However, Marschner also expressed concerns about potential market manipulation, particularly within the gold futures market. “I think that the manipulation is going to eventually pop,” he warned, “that comx will lose control of this there’s going to be a run and they will start settling in dollars and then Panic will set in and it’s going to be out of control.” This suggests a potential for market volatility and a sudden surge in demand for physical gold and silver.
Looking Ahead
While the immediate future of the precious metals market remains uncertain, Marschner believes that a combination of factors, including rising inflation and potential market corrections, could lead to renewed investor interest in gold and silver. He urges investors to view precious metals as a long-term strategy for wealth preservation and a hedge against economic uncertainty.
Watch the full interview:
