After a sharp bout of volatility in gold and silver, the question is who's selling, who's buying, and what comes next. AuAg Funds portfolio manager Eric Strand joined Investor Studios’ Market Update to unpack the recent moves, the role of central bank buying, and how a new Fed chair could reshape the inflation and interest-rate outlook.

**Valuable insights**

- Volatility in metals is often about trader positioning, not the long-term case. There’s a difference between short-term trader (who chased the swings in oil and rotated out of metals, for example) and long-term investors. Sharp moves in precious metals can reflect where the fast money is positioned, rather than any real change in the underlying case.
- Central banks hold gold because it carries no counterparty risk. Gold's enduring appeal to central banks comes down to one feature: unlike bonds or currencies, it has no counterparty. When trust in the financial system or in other nations is strained, an asset that can't be frozen or confiscated may become uniquely valuable as a reserve.
- Higher interest rates haven't always meant a lower gold price. The assumption that rising rates are negative for gold isn’t always the case – as it has risen through recent major rate-hiking cycles. It’s important to note that ‘cost-push inflation’ (rising prices from higher production costs, such as energy) and ‘demand-driven inflation’ (rising prices that come from demand outpacing supply in an overheating economy) may call for very different policy responses.



「 Marketing communication. Not investment advice. 」

Eric Strand on volatile gold & silver prices

Market Update är ett redaktionellt börsprogram producerat av Investor Studios. Programmet sänds live varje tisdag och fredag klockan 11.00, frekvent gästat av förvaltare, experter och noterade bolag.

Eric Strand, portfolio manager at AuAg Funds, joined Börslunch on EFN to discuss the gold price correction, what sentiment indicators are currently signalling, and why the present inflation environment may be misread by markets.

**Valuable insights:**

- **The conventional view that rate hikes hurt gold didn't hold in the last cycle.** Eric notes that gold performed strongly through the last rate-hiking cycle, pushing back on the widely held assumption that rising rates are automatically negative for gold.

- **Today's inflation is coming from oil, and rate hikes would add to the problem.** Eric argues this is cost-push inflation driven by energy costs — not the demand-driven kind that rate hikes are designed to fix.

- **If the Fed is forced to buy its own bonds, the gold outlook changes significantly.** With China and oil-producing nations stepping back from US treasuries, Eric sees a scenario where the Fed resorts to QE — something markets have not priced in, and that he views as positive for gold.

Gold, safe havens and inflation with AuAg Funds portfolio manager Eric Strand

Ädelmetallerna guld och silver handlas på toppnivåer och aktiekurserna för bolag verksamma inom guldindustrin utklassar allt motstånd på börsen. Eric Strand, som förvaltar en ädelmetallsfond på AuAg Fonder, förklarar vad som ligger bakom utvecklingen och spår framtiden för guldpriset.

Programledare är Gabriel Mellqvist. 

Eric Strand, portfolio manager at AuAg Funds, joined Dagens Industri's Börsmorgon on Di TV to talk about why the gold price has fallen, why central banks keep buying gold, and what is happening in silver and mining stocks.

**Valuable insights**

- **When nobody wants to buy, it can be a good time to look.** Gold has fallen sharply and buyer interest is low. Eric points out that historically, the moments when few people want to buy have often turned out to be among the better times to do so. A quiet market like this can mean prices are near a temporary low.

- **Central banks keep adding gold to their reserves.** Central banks hold gold as part of their national reserves, and they continue to buy more. China still keeps only a small share of its reserves in gold, which Eric says leaves room for plenty of further buying. He also notes that after the US froze other countries' assets, many central banks would rather hold gold than US government bonds.

- **Mining company shares have yet to catch up with metal prices.** The companies that dig gold and silver out of the ground have performed strongly, and silver miners have recently made a significant shift as they're performing better than gold miners. Even so, he argues their share prices still assume metal prices will fall back. If prices simply hold where they are, he sees continued potential in the sector.

Gold, silver and mining stocks with AuAg Funds portfolio manager Eric Strand

Börskoll 2 december – se hela programmet här

Eric Strand, förvaltare på Auag Fonder, gästar studion och delar sina tankar om silverpriset.
Vi tar även tempen på Europas ekonomi med hjälp av SEB:s euroekonom Pia Fromlet.
Programledare: Andreas Johansson

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Investor Studios | Eric Strand on volatile gold & silver prices

EFN | Gold, safe havens and inflation with AuAg Funds portfolio manager Eric Strand

Dagens Industri | Gold, silver and mining stocks with AuAg Funds portfolio manager Eric Strand

Investor Studios | Eric Strand on volatile gold & silver prices

EFN | Gold, safe havens and inflation with AuAg Funds portfolio manager Eric Strand

Dagens Industri | Gold, silver and mining stocks with AuAg Funds portfolio manager Eric Strand