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Marc Faber : "We won't see a federal deficit below a trillion dollars for a long time.
......The breaking point could be three, four, five years away. The world is heading toward a major crisis. In the meantime, central banks can continue to print money .......I am also warming to gold shares. Gold corrected to $1,522 last December from $1,921 in September. It rebounded to $1,795 in February and is back down around $1,600. The correction could last longer, but given that governments will print more money, gold is relatively effective as a currency. My preference is physical gold, but I would also own some gold shares, which have been decimated. Goldcorp [GG] is attractive because most of its properties are in the U.S., Canada, and Mexico. The company isn't exposed to regimes that are talking about nationalizing resources. In general, stock markets are oversold. The U.S. government-bond market is overbought. The U.S. dollar is overbought, and gold is oversold near term.
Bill Gross - " Treasuries are overvalued and getting more so as the global economy delevers.......
Another QE or two is just around the corner. Either the European Central Bank, or the Fed, or both will try to pull one more rabbit out of the hat.
Fred Hickey : "I sold and repurchased some bullion. Mostly, I am buying mining stocks because of their severe underperformance relative to the price of gold. "
I've been watching the underperformance of junior gold miners (GDXJ) since May 2011. The chart relative to gold looks and is indeed ugly. At some point there will be a reversion break:- Either gold will fall per ounce from US$1,600 to US$1,100 to reflect the falls in the index, or 2/ Investors will realise that the junior miners and the index are undervalued and are a compelling 'buy'.
ReplyDeleteWith all the rampant stimulus, I don't see gold getting below US1,500 in the near, medium or long term!
At these prices gold is still incredibly undervalued, in my view, and probably presents a better buying opportunity than any asset class!