Submitted by William Bonner, Chairman – Bonner & Partners
“In a world where the value of paper money is affirmatively aimed at being degraded by central bank policy, it’s kind of surprising to me that gold can’t catch a bid,”
the billionaire and member of Bloomberg Markets 50 Most Influential said at the SOHN Investment Conference in Tel Aviv yesterday.
Paul Singer, billionaire and chief executive officer of Elliott Management Corp.
(Photographer: Chris Ratcliffe/Bloomberg)
As reported by Bloomberg, Singer took aim at monetary policy makers for a staggered economic recovery from the 2008 financial crisis, and what he called the“cult of central banking” in which investors turn to regulators such as Janet Yellen and Mario Draghi to solve the ills of the global financial system.
And while those policies have “levitated” bond and equities, gold remains depressed and Singer is surprised by how little the investors he meets with own gold.
“I like gold. I believe it’s under-owned. It should be a part of every investment portfolio, maybe five to ten percent.”
Singer previously noted at this year’s Ira Sohn conference that it “feels like something institutional investors need to own,” adding that “the supply of gold cannot be radically expanded in a short period of time.”
Singer warned in August of 2014 of the “global monetary delusion” that would lead to higher gold prices – provided gold owners are patient.
“Although the levitation of financial assets has yet to levitate gold, we will grit our collective teeth on that score and await either ‘asset price justice’ or the ‘end times,’ whichever comes first.”
The “smart money” and by that we mean the more informed, aware and prudent investors and institutions internationally continue to have an allocation to gold and or add to existing allocations. The less informed continue to not understand or disparage gold and focus almost solely on gold’s short term price action rather than gold’s long term attributes as a hedging instrument and a safe haven asset.
Today’s Gold Prices: USD 1183.35, EUR 1034.08 and GBP 764.16 per ounce.
Yesterday’s Gold Prices: USD 1173.70, EUR 1028.52 and GBP 764.78 per ounce.
Gold in USD – 1 Month
Gold was higher yesterday and finished 1.4% or $19.80 higher, closing at $1187.90. Silver closed at $16.16, up $0.26 for the day. Euro gold rose to €1034 per ounce, platinum gained $11 to $997 per ounce.
Gold is now positive for the year. It’s rise yesterday picked up momentum on a break above its important 200-day moving average. Gold has not been above the important average since May, and hadn’t managed to hold above for more than a few sessions since early February.
Gold looks like it may go higher in the short term prior to a correction. The 14 day relative strength index (RSI) is still below oversold territory. It is at 67.7 this morning – still below the 70 level.