Once the dust has settled, GOLD WILL SHINE!
Thomas Wilson
Yacht industry-Yacht production and selling- Race coach-Coaching professional Yachtmaster instructor-Yachtmaster Ocean-Master 200GT
The French presidential elections had all the expected outcomes:
- Macron was elected
- Gold prices dropped
- And ………..?
NOTHING HAS CHANGED
The fact is that Europe is in the same trouble this week as it was last week and rather than repeating myself on that topic, I will refer you back to last week’s article that covered the main issues plaguing the EU. https://www.dhirubhai.net/pulse/trouble-europe-thomas-wilson
Some investors are asking what to do next.
Unless a radical change takes place in Europe, which I cannot see happen in a likely and near future, I am of the opinion that gold prices will rise and should reach $1400 this year and could even rally further.
Currently physical demand is strong.
Premiums for 1kg 99.99 bars are climbing. In the pro inter-dealer market:
- Istanbul has traded as high as $5 per ounce and is active in the $3-$5 range.
- Premiums in India have steadied and the same can be said about Dubai.
- Demand in continental Europe is robust and enquires are more numerous now than 14 days ago.
- China has seen very strong physical demand.
- As the price moves lower, physical buying is increasing.
My view has been consistent and has not changed since my article “Not the best time to become bearish on gold” https://www.dhirubhai.net/pulse/best-time-become-bearish-gold-thomas-wilson
- Gold with an $1100 handle is a great purchase
- Gold in the low $1200s is a good purchase
- Gold at $1300 should be purchase with some protection (buying a put for example) as it can go up $100 and also down $100.
I also strongly believe that gold should be part of every investor’s portfolio and that the investment product that you select and use to participate in the gold market depends on your time horizon:
- Short-term traders can consider paper gold
- Mid to long term investors should look at investing in physical gold as today this type of position offers significant advantages.
Again I will refer you to a previous article in which the differences between both types of gold investments are explained: https://www.dhirubhai.net/pulse/gold-physical-versus-paper-thomas-wilson
The fact is that today the world is as unstable as it was yesterday.
Macron arrival in power has avoided headaches for many pro Europeans. They can all breath a temporary sigh of relief but the key word in that sentence is “temporary”.
Europe is truly in trouble and this fact is constantly and continuously shoved under the carpet.
Add to this issue the tensions and troubles in Syria, the problems in the Korean peninsula and in several other parts of the planet and every investor who does not have gold in his or her portfolio should jump on the opportunity provided by the current price drop.
Add gold to your portfolio!
Gold in general and physical gold in particular is the most intelligent hedge and protection against all the various wows that are afflicting our world.
How you invest in gold is truly up to each individual as solutions can be tailored for you with ease. The gold market is extremely sophisticated and can cater for all needs and requirements.
The one constant that remains true whichever solution you chose:
Gold will always shine when the world is in trouble.
If you have not invested in gold and are seeking advice you can contact us at
.
Good article, Thomas.