Credit Suisse’s Tom Kendall is on Kitco News to talk about the bank’s forecasts for gold, silver and the global economy. “We’re looking for average $1,150 in Q3 and Q4 next year so we’re still bearish from current levels,” says Kendall. Why are the bank’s calls so bearish? “Because when we look at the factors that drove gold up… we see those factors have greatly diminished already and we expect them to diminish going forward,” he says. “The risk of a systemic collapse in the financial system has greatly diminished.” With regards to the Fed’s monetary policy, Kendall says that although these policies are unorthodox, he does see the economy slowly heading in the direction of normalization of this policy. “A widespread concern amongst investors was that this printing of money would lead to an uncontrolled breakout of inflation,” he says. “We don’t think inflation is a concern, certainly not for the next 12 months at the very least,” he adds. Kendall also says that in order for Credit Suisse to change its views on gold, the global economy would need to go back to “quite a bad place.” Watch now to hear his take on PGMs & silver, and why he thinks the industrial metals may outperform gold. Kitco News, November 19, 2013.
To watch this short video please click here.
In September 2011 the Gold Bugs index, the HUI stood at 630 as gold prices peaked, since then both have trended lower with the HUI losing about 65% of its value. The bottom has been called a number of times and after such a dramatic decline its difficult not to think that we are there now. However, as we all know the timing of any investment is crucial to its success and that is exactly what we are trying to do here, trying to pick advantageous entry and exit points. If you would like to know which stocks we are buying and selling please join us at ‘Stock Trader’ our premium investment service.
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