NEW YORK ( TheStreet) -- Gold has struggled of late but the continuing talk of when the Federal Reserve will start cutting back on bond purchases might not have an effect, Mike McGlone, director of research at ETF Securities, told TheStreet's Gregg Greenberg.
Although the Federal Reserve may slow down its asset purchasing program, McGlone said the move is already priced into gold. This has been evident, with the yellow metal down almost 25% in 2013, along with silver, which is down 36%.
He also said that the decision of the next Fed Chairman will only affect gold in the short term, if at all.
Based on his rationale, this will bode well for precious metal bulls since physical demand has significantly increased in China, India and the rest of Asia.While worldwide physical demand remains strong, India now has restrictions on the metal and will likely be restricted on silver as well. The U.S. Mint is on pace to sell 50 million ounces of silver, crushing the previous annual record of 40 million ounces. McGlone also said that supply remains short, with miners unable to match the productivity they have demonstrated in the past. He added that industrial demand for silver, platinum and palladium should increase over time as well. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell