Philip Silverman, Managing Partner Kingsview
Management, said investors should use the “snapback” rally to
sell stocks and commodities.
The only thing that investors should be looking to add is gold, which
will benefit from further monetary easing, Silverman said.
“We would expect that there is going to be some sort of movement
out of the ECB… some sort of movement out of the U.S. to continue doing
their stimulus, which really hasn’t done anything substantial but
they’ll continue to try,” Silverman told CNBC Asia’s
Burkhard Varnholt, Chief
Investment Officer and Head of Asset Management at Sarasin Bank, also told
CNBC he believes the precious metal will gain because of its status as an
“I think gold ultimately will hit $2,000 and there are two
reasons behind that,” Varnholt said.
“One is continued central bank buying from Asia who are looking to
diversify out of euro zone dollars and then because investors are concerned
about fiscal recklessness.”
It may turn
out that last Friday’s labor report was more important for how people
see gold than for how people see the U.S. economy as the months-long derision
about the metal not being a safe haven seems to have quickly been
forgotten after it went up on that day and everything else went down.
price is going up again today after China slashed interest rates and prior to
Fed Chief Ben Bernanke telling Congress how he sees things. Given the change
in sentiment expressed by Federal Reserve officials already this week, look
for The Bernank to indicate his money printing
trigger finger is getting itchy.