Gold traders expect the gold price to climb between 25 per cent and 50 per cent next year as a coming swarm of political uncertainties will lead investors to bet in the precious metal.
SCMP, Dec. 5
One day I shall read that gold traders expect the price of gold to go down next year. One day I shall also read that the moon is made of blue cheese.
Little could be more uncertain than the political events of the last half year – Brexit, the election of Donald Trump and now Europe in turmoil again with Italians scorning constitutional reform. On every side voters have rejected rule by bureaucrat through tamed establishment politician.
It should mean a flight to gold in a scramble for a bastion of security. But yet for the last six months gold has trended down. The markets are not spooked and I cannot imagine what “swarm of political uncertainties” gold traders could have in mind for 2017 if those of 2016 did not suit their book.
The value of your savings now depends only on your faith that the monetary authority appointed by your government will not cheat you
There is another trend of interest I also see here. I have constructed a simple, arithmetic index of US dollar prices for six base metals and you see it in the blue line in the chart, set to an index value of 100 for June 30 this year. These metals are aluminium, copper, lead, nickel, tin and zinc.