Posts Tagged ‘ gold ’

Gold Bubble goes Bust !

On April 3 rd I wrote a blog Tony Evans Blog -Gold Bubble – about to Burst ? I spoke about how I can see the gold price continuing to fall and well it did yesterday ! not all that shines is gold or that all that is gold is investment .

Why ?

Everyone think that the precedent on Cyprus having to sell Gold to pay off the debt .

Diversification is needed , all assets have a place in a portfolio if it reviewed .

I quoted the below from our CEO Nigel Green ,

Tony Evans
Tokyo

Nigel Green Blog -The lessons we should take from the gold crash
The freefall of gold prices in recent days underscores the need for investors to hold a well-diversified and regularly reviewed portfolio.

Yesterday, the so-called ‘safe haven’ metal fell a further 8 per cent, to under $1,400 per ounce, bringing it down to its lowest level in two years. It is now in bear market territory, having fallen 27 per cent from its record high in the autumn of 2011. As a company we warned the price was too high 15 months ago.

Most analysts agree that this week’s crash has been led by weak economic data coming out of China. The economy of the People’s Republic, the world’s second largest, grew by 7.7 per cent in the first quarter of 2013, down from 7.9 per cent in the previous quarter, sparking fears over a serious slow down in the superpower’s economy and the likely global consequences of this. I believe that people are also now realising that Gold is not a good long term investment.

News that Cyprus is to sell off its gold reserves, as part of its bailout in order to raise around 400m euros, plus notions that the Federal Reserve in the US is now less likely to extend its programme of quantitative easing (QE), has also served to exacerbate the situation.

To my mind, what has happened to gold recently highlights that, like never before – as we’re living in fast-changing, volatile times in an increasingly globalised and interdependent world – has a well-diversified, professionally-managed portfolio been so important to mitigate adverse external factors and benefit from the positive ones.

Personally I believe the next asset class to fall in the next 18 months will be Govt Bonds. That however doesn’t change my advice which is invest with investment managers such as JP Morgan, Goldman Sachs and GAM who all manage excellent well diversified portfolios.

Nigel Green deVere Group

Blog written 16th April

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Gold Bubble – about to Burst ?

I have been saying Gold has been in a bubble for around 2 years . Gold increased in value on the basis of uncertainity in the market , but with s a stronger U.S. economy helps increase interest rates and cut Gold demand .

Why would you invest ?

My personal opinion I haven’t seen clients raising their holdings because inflation has remained low, the USA economy is improving and may spur the Federal
Reserve
to holt stimulus and the dollar has strengthened, the bank said
today in a report. Bullion is down nearly 5% this year .I can see gold going towards $1300 in the near term and looking at $1200 by year end

Billionaire investor George Soros, who called gold the “ultimate asset bubble” in 2010, cut his stake in the biggest gold exchange-traded product by 55%.

When you have people like Soros selling you know its a good sign , time to take profits and invest in the market .

http://www.bloomberg.com/news/2013-04-02/gold-bubble-seen-turning-to-bear-market-by-socgen-on-recovery.html

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