Has Gold Hit Bottom and What Will Drive it to $10,000?
Published July 5, 2012 9:33 AM
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Updated December 30, 2016 6:33 AM
1 Min Read
Has Gold Hit Bottom, and What Will Drive it to $10,000?
The macro-economic conditions that have supported golds bull run over the past decade have not changed; in fact, theyve become progressively worse. This is the calm before the storm.
Check out insights from Nick Barisheff, the president and CEO of Bullion Management Group, which provides investors with a cost-effective way to purchase and store physical bullion.
Check out insights from Nick Barisheff, the president and CEO of Bullion Management Group, which provides investors with a cost-effective way to purchase and store physical bullion.
Has Gold Hit Bottom, and What Will Drive it to $10,000?
In Europe, a good storm-watch indicator is the Bloomberg Europe 500 Banks and Financial Services Index, which is down around 35% over the last year. In the United States, according to an interview with Lakshman Achuthan, COO of the Economic Cycle Research Institute (ECRI), The question is not whether there will be a [US] recession, but when there will be a recession. We are very clearly on record for forecasting a recession to start by the middle of this year.
Has Gold Hit Bottom, and What Will Drive it to $10,000?
Gold is universally under-owned by everyone, including institutional portfolio and pension fund managers Pension fund managers have a fiduciary responsibility to meet liabilities. They use asset allocation to achieve diversification in order to reduce risk, maximize performance and thus responsibly manage their funds.
Has Gold Hit Bottom, and What Will Drive it to $10,000?
To ignore the best-performing asset class year after year could conceivably expose managers and trustees to legal liabilities.
Has Gold Hit Bottom, and What Will Drive it to $10,000?
The traditional view is that three asset classes (stocks, bonds and cash) are sufficient to achieve diversification. But if you look at the chart above you will see that only precious metals offer negative correlation to stocks, bonds and cash; a portfolio that consists of only positively correlated asset classes is not balanced or diversified.
Has Gold Hit Bottom, and What Will Drive it to $10,000?
Holding cash for portfolio protection does not work either. The figure above shows the dismal performance of five major currencies versus gold since 2001.
Has Gold Hit Bottom, and What Will Drive it to $10,000?
Holding cash for portfolio protection does not work either. The figure above shows the dismal performance of five major currencies versus gold since 2001.
Has Gold Hit Bottom, and What Will Drive it to $10,000?
Fund managers, advisors and investors must realize that not all bullion investments are created equal. Uncompromised gold that offers liquidity, no counterparty risk, and allows unitholders to own their bullion outright is hard to find, yet well worth the effort, particularly in an era of increasing risk to the very foundations of the financial system.
Due to extensive and increasing risks facing the global economy, gold is poised to proceed in its bull market to a conceivable target of $10,000 an ounce. How best to participate in the upside is open to debate, but we feel that ownership of uncompromised bullion is the most reliable way of preserving wealth.
Also see:
6 Simple (But Important) ETF Trading Tips
10 Gigantic Mistakes That Can Cripple Your Clients ETF Portfolios
10 Undervalued, Dividend-Paying Stocks
10 Dividend-Paying Stocks Your Clients Will Want
Due to extensive and increasing risks facing the global economy, gold is poised to proceed in its bull market to a conceivable target of $10,000 an ounce. How best to participate in the upside is open to debate, but we feel that ownership of uncompromised bullion is the most reliable way of preserving wealth.
Also see:
6 Simple (But Important) ETF Trading Tips
10 Gigantic Mistakes That Can Cripple Your Clients ETF Portfolios
10 Undervalued, Dividend-Paying Stocks
10 Dividend-Paying Stocks Your Clients Will Want
