Gold’s up 12 per cent against the yen this year, 9.5 per cent against the euro and for Russian holders up 80 per cent. It’s been the perfect hedge in a very imperfect world of currency wars and money printing. Investors stocking up on bullion at current depressed prices know what they are doing.
It is of course never quite that simple. ArabianMoney can see three different scenarios for gold and silver prices in 2015.
2015 gold scenarios
First, US stock markets crash in anticipation of a rate rise in June. Falling markets will briefly pull the price of bullion down with them. QE4 is launched. Then prices recover sharply by the end of the year and actually exceed all other asset classes in performance. That’s something of a repeat of 2008-9. In addition, QE4 might crash the bond market and send gold prices to the moon.
Secondly, the global economic contractions becomes so bad by mid-year that the Fed abandons rate rises as impossible. Stock markets correct as the profit outlook is also therefore bleak. But as the threat of higher interest rates to bullion is gone then gold and silver have a positive year alongside bonds which have another surprisingly good year.
This post was published at SilverSeek on December 22, 2014 –.
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