Strategists Advocate Gold Price Exposure
比爾葛羅斯Bill Gross, Felix Zulauf,
Abby Joseph Cohen, Fred Hickey,
「末日博士」馬克法伯 Marc Faber,
n 馬克法伯 Marc Faber說任何投資者必須長期持有黃金。
n Mario Gabelli說美國聯準會即將再次大量印鈔票。
n Fred Hickey強調說在美國帶頭印鈔票下，
June 14th, 2010 - 9:25 am | by GoldAlert
GOLD PRICE NEWS - The gold price moved lower Monday morning, falling $5.00 to $1,221.75, as investors and traders regained their appetite for risk. While the gold price softened, cyclical commodities such as oil and copper rose and stocks moved higher. The price of gold, as well as the share prices of the world’s largest gold producers such as Barrick Gold (ABX) and Newmont Mining (NEM), has been consolidating in the $1,200 to $1,250 range for most of the past month. A move out of this range will likely provide the answer as to whether gold enters a deeper correction or breaks out to new record highs.
Monday morning’s move toward a healthier risk appetite was also evident in the foreign exchange markets. The euro rose versus the U.S. dollar, climbing to 1.226. Commodity currencies, such as the Canadian dollar and the Australian dollar, also appreciated against the greenback. The U.S. Dollar Index (DXY) has declined 2.6% over the past week, falling in tandem with the gold price, which has declined $17 over the same time period. The historical negative correlation between the gold price and the U.S. dollar has disappeared in 2010 as the dollar has joined gold, for the time being, as a safe haven.
This past weekend Barron’s published its mid-year Roundtable, which featured a number of the world’s most prominent and well-known investment strategists. Bill Gross, Felix Zulauf, Abby Joseph Cohen, Fred Hickey, Marc Faber, and Mario Gabelli all presented their outlook for the balance of 2010 as well as offering investment ideas to the periodical’s readers.
Faber reiterated his bullish outlook for the gold price, stating that “the Federal Reserve is run by a money printer, and a prospective vice chairman, Janet Yellen, who said she would implement negative interest rates if she could.” The outspoken critic of Fed Chairman Ben Bernanke went to proffer that “Interest rates, in real terms, will stay at zero forever…Investors will be badly served, in this money-printing environment, by being in cash and U.S. government bonds.” Faber continues to recommend having exposure to the gold price, noting that “my recommendation in January to own gold still stands. Gold can correct from today’s level, but in the longer term responsible citizens must own gold reserves.”
Even generalist investor Mario Gabelli advised a modicum of exposure to the gold price in the current macro-economic climate, telling Barron’s “How do you trust any currency? Therefore, you have to nibble at gold, although that isn’t one of my midyear recommendations.” Perhaps the most vocal gold bull on the panel was Fred Hickey, who expects “the Fed to start printing money again.” Hickey noted that talk of exit strategies has vanished and this fact is one of the chief rationales for his significant exposure to the gold price.
Mr. Hickey told Barron’s that “my biggest positions are in gold“ and discussed his position in the SPDR Gold Trust (GLD) as well as the Market Vectors Gold Miners ETF (GDX). He highlighted Newmont Mining (NEM) when presenting his case for the gold stocks, noting that Newmont is “earning almost a dollar per share per quarter, and generating hundreds of millions of dollars in cash flow.” Hickey also commented on the combination of a $1,220 gold price and falling input costs into gold mining, stating that “everything is falling into place for the industry.” The investment strategist has recommended being long gold stocks for quite some time and while the gold stocks have lagged the gold price in recent years, believes “the stocks are going to catch up.”