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ROSENBERG: GOLD STILL LOOKS GOOD

From this morning’s piece by David Rosenberg.  The long time gold bull still thinks the yellow metal’s bull market is alive and that prices are headed to $3,000:

“Indeed, the yellow metal is trading less and less like a commodity over time and more like a currency – a currency that is no government’s liability and where no central bank has a printing press.

The Bank of Japan just announced how it has been engaging in “stealth intervention” to weaken the Yen.  The Europeans desperately need a soft Euro to have exports act as an antidote from escalating fiscal drag.  Of course, we saw the Swiss last year throw in the towel on accepting a strong Franc.  In the emerging markets world, there has been no shortage of market-meddling initiatives to soften their currencies.  And in the US, part of the White House drive to bring jobs home – how mercantilist can this be? – necessarily involves sanctioning a “more competitive” currency.

Now we have central banks continuously priming the monetary pumps as well.  If we adhere to Bob Farrell’s Rule #! and then look at what that is going to mean with respect to the ratio of gold price to global currency in circulation, getting to $3,000 before the bull market in bullion busts is, in our opinion, quite easily attainable.”

Source: Gluskin Sheff

 

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