The standard wisdom on gold is that it does well in times of economic bad news such as in the 1970s, a period of stagflation and recessions, when the yellow metal rose from $35/oz to peak at $850/oz in 1980. But this time, Don Coxe, a portfolio adviser to the BMO Asset Management, believes things are different. In this interview with The Gold Report, Coxe explains why gold will rise when the economy improves.
Articles Tagged "eurozone"
The world's economy is in tatters and safe havens are few and far between, says legendary contrarian Marc Faber. The banking crisis in Cyprus has shown that even bank deposits are not safe. The publisher of the Doom, Boom and Gloom newsletter, surveying the world from his perch in Hong Kong, discusses the impact of unemployment in Europe, the economic slowdown in China, asset bubbles and the turnaround prospects for precious metals miners. Faber also reveals his investment strategy for these volatile times in this interview with The Gold Report.
Gold's steep declines have left many gold investors unsure what to do.
Driven past $1,600 a week ago on fears of Cyprus going over a financial cliff, gold lost value after a bailout deal was announced.
The frightening specter of a run on European banks, evidenced by events in Cyprus, had investors clamoring for the safety of gold this week.
Traders covered their short positions after interpreting an ECB official's comments as indicative of continued monetary easing, bringing gold up more than 1 percent, to above $1,590 per ounce.
Many are concerned about gold's role in the current risk-on environment. The WGC weighs in.
Reuters reported that gold prices climbed 1.5 percent on Thursday, the biggest gain in two weeks for the yellow metal. Boosting the gold price was hopes for additional monetary stimulus from China and renewed austerity steps in Spain which have raised more concerns about the Eurozone.
Reuters reported that gold prices ended lower on Wednesday's trading session, off a previous two-week low. Responsible for weaker gold is a stronger dollar and weaker crude oil, triggered on profit-taking following the bullion's recent rally. Investors are also shifting their focus to developments in the latest bout of Eurozone debt crisis.
Bloomberg reported that gold futures hit a 29-week high as a result of expectations that demand will increase as central banks in the United States, Japan and Europe take steps to fuel economic growth.