Shelter in gold. “If things are so great, why did the Fed have to cut rates last year?” he said in an interview at Bloomberg’s Toronto office. “If things are so great, why did the Fed have to embark on QE4, that we’re not supposed to call QE4?”
“You have to have balance … & I think you have to have certain amount of gold in your portfolio,” Dalio said, reiterating his call last year that gold will be a top investment in the years to come.
This week, Donald Trump formally nominated Judy Shelton and Christopher Waller for vacant governorships on the Federal Reserve. Waller, the Vice President of the Richmond Fed, is widely viewed as a standard Fed nominee with the reputation of being a “dove” who has criticized recent interest rate hikes.
It is Judy Shelton who is particularly interesting.
A former campaign adviser for Trump, Shelton has been a vocal Fed critic who has praised the gold standard in the past.
There are reasons to think that the gold price will rise faster than expected.
Since 2009 China has withdrawn 12,000 tonnes of gold from the rest of the world, where the short and medium-term gold price is set. For reasons I will explain, a tighter market outside of China can make the price of gold price rise faster than many expect. I believe the gold price will rise, because of excessive debt levels around the world, and incessant money printing by central banks.
Peter Schiff has been saying the Federal Reserve is going to let the inflation monster loose and this is going to be good for gold. Some people in the mainstream are starting to pick up on this theme. During a recent interview with the Financial Times, Bridgewater Associates co-chief investment officer Greg Jensen said gold
The World Gold Council (WGC) has introduced a web-based quantitative tool that helps investors intuitively understand the drivers of gold performance.
The new platform, called Qaurum, will allow investors to assess how gold may react across different economic environments in three steps.
First, select a hypothetical macroeconomic scenario provided by Oxford Economics, a leader in global forecasting and quantitative analysis, or customize your own, then, generate forecasts of gold demand and supply and view the impact of key macro drivers.
David Rosenberg, Chief Economist & Strategist of Rosenberg Research, doesn’t believe in the sustainability of the stock market rally, and warns that investors may be disappointed at the end of the year. He is bullish on energy stocks – and predicts that the gold price will surge to $3000.
Mr. Rosenberg is also the author of Breakfast with Dave, a daily distillation of his economic and financial market insights.
“At this level, many things have to go optimally so that the prices are higher at the end of the year,” comments David Rosenberg on the growing complacency among investors.
Bridgewater is not alone in recommending the bullion. DoubleLine CEO Jeffrey Gundlach also said last year he was a buyer of gold on expectations that the dollar would weaken.
Central banks continued their remarkable gold-buying spree in November and remain on pace to eclipse 2018’s near-record purchases. According to the latest numbers from the World Gold Council, central banks added 27.9 tons on a net-basis to official gold reserves in November. That brings the yearly total for 2018 with one month left to calculate
The money to push gold over $10,000 per ounce has already been printed. And now they are going to print more.