An Optimistic Outlook on an Anniversary of Pain

Jordan Eliseo

The Perth Mint

This week marks the second anniversary of the largest sell off in gold since the 80s. Between the 11th and the 15th of April 2013, the gold price sank from USD $1565oz all the way down to USD $1395oz, with an intra-day low closer to USD $1350oz. There was a combination of factors driving that collapse, with falling inflation, Goldman Sachs recommendations to 'short' gold, and headlines suggesting Cyprus would need to sell its gold to cover its debts prominent. 2 years on, whilst sentiment towards the sector is still at rock-bottom, the wheel is slowly turning, with a growing realisation the end of the easy money era will be delayed further. Concern surrounding market bubbles grows too, with the Swiss issuance of a 10yr bond with a negative yield the latest step into the monetary unknown. BOA Merrill Lynch were even out this week with a forecast of USD $1500oz gold by 2017. if that happens with the Aussie in the mid 60's, it will be a 50% return for investors going long today. more details here (VIEW LINK)


Gold bull since early 2000. Have spent +20yrs working in investment analytics, research & portfolio construction. Author of two books on investing in gold and the causes of the GFC. Lover of markets, competition & technology

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