Salient to Investors: Gold traders are divided on the outlook for prices, as gold is poised for the biggest quarterly drop in at least 9 decades after investors cut bullion holdings to a 3-year low. Thorsten Polleit at Degussa Goldhandel said we are already at distressed prices really oversold, but a
READ MORE... →Salient to Investors: A. Gary Shilling at A. Gary Shilling & Co. writes: Short stocks and commodities, go long the dollar and Treasuries – if stocks continue to decline, the safety of Treasuries and investment-grade bonds will outweigh concerns about the end of QE. World economies are growing slowly at
READ MORE... →Salient to Investors: Donald Selkin at National Securities said when the market gets into a trend, people want to follow it, and now we’re in a severe downtrend, so the psychology is terrible, and if any of the big holders that are still in the SPDR Gold Trust start are forced to
READ MORE... →Salient to Investors: Nouriel Roubini writes: All investors should own a very modest share of gold as a hedge against extreme tail risks, but other real assets can provide a similar hedge, and those tail risks are certainly lower today than at the peak of the global financial crisis. Read
READ MORE... →Salient to Investors: Gold dropped 23 percent this quarter, heading for its biggest loss since at least 1920 in London. A lack of accelerating inflation and mounting concern about the strength of the global economy is hurting silver, platinum and palladium, which are used more in industry than gold. Bart Melek at
READ MORE... →Salient to Investors: Nouriel Roubini writes: Gold spikes in times of serious economic, financial and geopolitical risks, but that does not make it such a safe investment – cf sharp falls in gold prices during crisis periods of 2008 and 2009. Gold performs best in times of high inflationary risks
READ MORE... →Salient to Investors: Ken Fisher at Fisher Investments said: The rally that began in 2009 is only in its middle stages because most investors still underestimate the strength of the economy – in between the transition from skepticism to optimism It is amazing that people do not marvel at the power of
READ MORE... →Salient to Investors: Gold’s 14-day relative strength index was below the level that indicates a rebound may be imminent. Jeffrey Christian at CPM said it is too soon to predict if a buying frenzy will be repeated because the enthusiastic buyers in April have become more cautious, though says the worst
READ MORE... →Salient to Investors: 15 analysts are bearish for gold prices next week, 6 are bullish and 5 are neutral – the largest proportion of bears since Jan 2010. Frederique Dubrion at Blue Star Advisors said the Fed’s comments are the last signal for the soft hands that the bull market in gold
READ MORE... →Salient to Investors: Ted Harper at Frost Investment Advisors said the concern about the Fed removing QE signals a strengthening in conditions, which helps the dollar and at the margin hurts gold. Harper said John Paulson’s returns are emblematic of the difficult environment for gold. The World Bank raised its 2013 US growth
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