Be Careful What You Wish For
(Kitco News)- It's Friday the 13th but no badluck in store here for gold which surged midweek as the market factored inpotential U.S. military action in Syria.
When I tweeted earlier this week asking readers and viewers how everyonewas feeling about the gold rally - bestselling author and gold advocate JimRickards came back with a poignant remark, “careful what you wish for, ittells us, something else is broken.”
Indeed.
Adrian Day, chief executive officer of Adrian Day Asset Management wasquoted in our weekly survey saying, “The Syria issue is not over by anymeans, and there is a risk of a direct military confrontation between theU.S. and Russia, which would have enormous consequences. Moreover,Washington remains in turmoil and monetary factors continue to befavorable.”
Adam Button, managing director of ForexLive echoed the same, “[U.S.President Donald] Trump has delayed the strikes on Syria but they’reinevitable sometime in the weeks ahead,” he told Kitco News.
In our online gold survey, 82%, predicted that gold prices would be higherin a week, while 12% said gold will fall. For the trading week now windingdown, the bullish camp was right, Comex June gold settled Friday at1,347.90 an ounce, up almost 1% since last week, but prices are down fromWednesday’s 1,369.40 peak, an eight week high.
With all this movement in gold - it has brought up the on-going debate ofwhere does one invest? Physical, miners, or heck, both?
While Mark Cuban said he we wouldn’t touch gold with a ten foot pole(thanks for all your mail btw - both hate and love for that interview) -his Shark Tank counterpart Kevin O’Leary told me that he is all aboutholding bullion but does not like the miners - noting they just can’t gettheir act together when it comes to management.
“The value of the commodity is whatever it is every day. I don’t need tohave a manager in the middle screwing up his capital cost allowance, notcontrolling his costs,” O’Leary said.
Others, like Frank Holmes, CEO of U.S. Global Investors, think otherwise.In our recent chat, he said he prefers gold equities versus the physicalmetal, even though he expects gold prices to push above $1,500 an ounce.
And then we have Jeffrey Gundlach, the famed investor and “bond king,” whoremains optimistic that it is only a matter of time before gold pricesbreak their chains.
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Kitco News is back on the road next week - join us from the IPMI’s latestconference in New Jersey where we will have a fresh batch of videos.
On Monday, gear up because Jim Rogers is back - let’s see whether hiseconomic outlook has changed....
Enjoy the weekend,
Daniela
By Daniela CamboneFor Kitco News
Follow @DanielaCambone
dcambone@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.