The historical growth in the price of gold shows growth resembling a vertical line, which is not characteristic or normal for the markets. In such a situation it is most difficult and dangerous to trade. Until we see the entire global order rewritten, gold will not stop going up. This is what Tsvetoslav Tsachev, chief investment consultant at Elana Trading, said in the “Business Start” program on Bloomberg TV Bulgaria.
Gold crossed the barrier of $5,000 per troy ounce, which is the strongest signal of geopolitical risks. According to him, any statement related to sanctions, tariffs or any other kind of tension leads to interest in the search for the precious metals. We are already seeing extremely strong interest in silver and platinum, which is more of a realization of these long-term factors among the mainstream investor.
“This, of course, does not mean that such gains cannot be interrupted. The big players who bought low can take advantage of this ‘market overexcitement,'” commented the guest.
According to the interlocutor, central banks are not speculators, but for the mass investor, this is inclusion in the final stage of growth, and here we can always talk about the big risk, said Tsachev. He added that the market has a foundation, but it has jumped too fast. And such a phase is risky and can always lead to serious declines, which is part of long-term growth.
Behind the growth of gold and other assets is the idea that the dollar is depreciating, Tsachev explained. This is supported by the growth of government debts and deficits. The key is that this process will not accelerate dramatically, but it does not yet show us how these fears will be transferred to small investors.
“We see how the gap between consumers in the US is getting bigger and bigger. Those who have assets are earning and getting richer, but the other half of the population is moving downward. In 2026, this gap will continue to widen,” said Tsachev.
The conversation is not advice on making an investment decision!
See the full commentary in the video at Bloomberg TV Bulgaria.
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