"Billionaire investor Thomas Kaplan says he's unfazed by the historic plunge in gold and silver prices - and expects the precious metals will rally to even greater highs. There's "every reason in the world to buy gold, and silver is just gold on steroids, up and down," Kaplan told Business Insider on Friday afternoon. Gold and silver soared to record highs last week before falling by around 10% and more than 30%, respectively, on Friday after President Donald Trump nominated Kevin Warsh as the Federal Reserve's next chairman. The news triggered profit taking and bets on a stronger dollar, fueling volatile trading in gold and silver on Monday morning."
"Kaplan is the chairman of NovaGold Resources, a gold exploration-and-development company, and founder and chief investment officer of The Electrum Group, an investment firm focused on natural resources. He told Business Insider that people thought he was "loopy" in 2007 for saying a fair price for gold would be $3,000 to $5,000 an ounce. The yellow metal soared from below $700at the start of that year to over $5,600 at its peak last week, while silver jumped from under $15 to over $120 in the same timeframe. They were trading around $4,800 and $84, respectively, on Monday morning."
""The only things that I've believed in since the financial crisis are gold and silver, and that's how I've positioned myself," Kaplan said, adding that he knew it could take a decade or longer for his thesis to fully play out."
Gold and silver experienced historic surges followed by steep pullbacks and short-term volatility, with gold down about 10% and silver more than 30% after a Federal Reserve nomination prompted profit-taking and stronger-dollar bets. Recent trading levels were around $4,800 for gold and $84 for silver. Long-term projections place gold in the tens of thousands of dollars, while silver behaves as a more volatile, leveraged form of gold. Prior forecasts of $3,000–$5,000 for gold were met as the metal rose from below $700 to over $5,600. The multi-decade outlook could take a decade or longer to fully materialize.
Read at Business Insider
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