Commodity Trade Mantra

Posts Tagged ‘Gold Fund’

Pension Funds Need Gold and Silver Before They Implode

While most managers of pension funds shy away from gold, they do so at their own risk & of their pensioners. In today’s uncertain times, few things are as certain as the devaluation of the dollar. It’s time for pension fund managers to break out of their Wall Street groupthink and include a meaningful allocation to physical gold and silver bullion for protection against inflation and financial turmoil.

Who Will Decide the Fate of Gold ETFs? The Fed or Donald Trump

Citigroup sees gold prices touching $1,400 levels ‘not seen since early 2013’, while the metal will likely slide to the $1,250 level if Clinton makes it to the White House. Citigroup believes that Trump’s protectionist ideas on external trade and immigration, if realized, suggest a US recession sooner rather than later. Investors to keep a watch on gold ETFs like GLD.

Negative Yields On Global Government Debt Drives Gold Demand

It’s unprecedented that a third of all global government debt has negative yields. Which drives gold demand. Effectively what we’re seeing is people’s pensions being decimated because the policymakers have had very few if any alternatives left. It is in this environment that gold will help satisfy need. It’s more about protection of wealth rather than creation. That’s where gold plays.

China Creates World's Largest Physical Gold Investment Fund For Central Banks

China’s new international gold fund expects to raise 100 billion yuan or $16 billion. About 60 countries have invested in the fund, which will in turn facilitate gold purchase for the central banks of member states to increase their gold holdings. The new project marks another step forward in the internationalisation of the Yuan.

The Simple Test to Determine if Gold Is at a Bottom

The industry can’t produce any more gold at these prices & that impacts the supply side. It certainly meets the test of being a contrarian investment. In our opinion, sentiment is pretty much rock bottom. It has gotten better with this rally, but in the bigger scheme of things, people still scoff at the idea of gold. That is one sign of a bottom.

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