We read that in a recent report Goldman Sachs predicted that gold will average $785/oz through 2007 and maybe they are right. We would not be bold enough to say that, but we would be bold enough to say that our next target for gold, still remains $1,000/oz. It is possible for that figure to be hit some time next year, which would probably have to happen for the Goldman Sachs average price prediction to prove correct. In spite of the volatility, the chart for gold bullion remains bullish. We suspect that the recent weakness is because of a short-term correlation that exists with oil and that oil weakness is impacting upon the gold bullion price.
The end of September was the last date that Central Banks had to sell gold under the five-year pact in which they have agreed to limit total sales to 500 tonnes per annum. This was the second year of the second such five-year pact. It is generally reported that the amount of gold sold was somewhere between 400 tonnes and 420 tonnes. Now September is over, the unused amount cannot be carried forward.
If the American economy is to slow next year and it is expected to do so and if the US property market is at the heart of that slowing, then interest rates will be cut, fears of excess money supply will grow and the dollar should weaken. All of this is positive for the gold price which is also a hedge for just about anything that might go wrong. Our enthusiasm has in no way abated for gold related investments which we expect, over the longer-term to be the major winner in the investment world. This has largely been the case since 2000, over that time-frame Black Rock Gold & General Fund is up 370%. The bull market for gold and gold related investments is, we contend, nowhere near ended.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
By John Robson & Andrew Selsby at RH Asset Management Limited, as published in the Onassis Newsletter, a fortnightly newsletter that gives insight into the investment markets.
For more from RHAM, visit https://www.rhasset.co.uk/
-
Side hustle tax changes: HMRC reforms could save thousands from filing self-assessment tax returnsThe government plans to raise the tax-free threshold for trading income – here is how it could help your side hustle
-
Return to the office: is working from home coming to an end?More and more employers want their staff to return to the office. Is it a good idea?
-
Protect against inflation with Britannia gold coins and barsAdvertisement Feature With UK inflation at a 40-year high and expected to rise even higher, interest in physical gold is surging once again. And The Royal Mint’s Britannia gold coins and bars offer an accessible and affordable way to buy.
-
Gold is poised to glitter againNews It has been a bad year so far for gold investors, but gold’s traditional role as an inflation hedge will serve it well.
-
Inflation will restore gold’s shineNews Gold remains up by 53% since August 2018 but is now trading 11% short of its peak this summer. But if you hold gold, hang on to it.
-
Gold has recovered its mojoNews Gold has been on an impressive run this year, breaking through $1,800 an ounce.
-
Gold is back in fashionFeatures Gold’s reputation as a safe haven is also coming to the fore now that markets have become more volatile and the political backdrop less predictable.
-
Why I sold some of my gold when Donald Trump wonFeatures After Donald Trump’s election victory, stockmarkets rallied and bonds sold off. That’s perhaps not too surprising. But gold saw a brutal sell-off too. Dominic Frisby explains why he joined in.
-
Sprott calls out the World Gold CouncilTutorials Accusations of a critical shortfall in gold have rocked the market, says Simon Popple. And if right, it can only mean one thing for the gold price.
-
Gold is now in a bear market – is it time to sell?
Features With its price now more than 20% below its 2011 peak, gold is now in a bear market. Does this spell the end of the long-term bull run? John Stepek investigates.
