Updates: Joni Teves, Precious Metals Strategist at UBS has upgraded her gold forecast. She see gold reaching $1,600 by years end and breaking through $1,600 in the next 12 months. She also expects silver to reach $20 by the end of the year and for the gold:silver ratio to eventually fall below the long-term average of 60:1. It’s a typical forecast coming from the banking sector that is conservative, but shows that the general uptrend in metals is undeniable.
Dominic Schnider, head of commodities at UBS Global Wealth Management talked to Bloomberg this week about being “Defensively positioned amidst trade talks (potentially dragged out) and coming additional Fed cuts. The headline here is “Any pullback in gold is a buying opportunity”. He also commented that negative rates removes the opportunity cost to own gold.
RT reported this week that China has added over 100 tons of gold to its coffers this year amidst ongoing trade talks. The obliviously need a hedge against their large USD holdings.
On CNBC this week Mark Mobius, founding partner at Mobius Capital Partners who spent three decades at Franklin Templeton Investments has his eyes set on gold. While recommending only 10% allocation to physical, he did emphasize physical and cited the incredible increase in money supply be it central banks or even crypto-currencies. He also noted that “They are certainly going to try to weaken the dollar against other currencies and of course, it’s a race to the bottom. Because, as soon as they do that, other currencies will also weaken”.
Segment 2: Gerald Celente put out a major report through King World News. In it he makes some major predictions. When they are all put together you can see why he believes gold is going much higher? How high? You’ll have to listen in to the segment.
Segment 3: What is better to own Gold or Silver? In this segment we breakdown the advantages, disadvantages of each and give the listener things to consider when looking to acquire bullion for the first time.
Segment 4: A 10.64-carat fancy vivid purplish pink diamond sold for HK$155m (US$19.76m) at Sotheby’s in Hong Kong, making it the fourth item that reached the HK$100m benchmark this auction season in Hong Kong.
Segment 5: Just don’t call it QE. Jerome Powell does not want you to call the expansion of the balance sheet QE and insists it’s not QE. So we decided to breakdown what Quantitative Easing actually is so that listeners can make up their own minds. We also take some time to translate some other ‘Fed-Speak’ phrases.