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 “Squawk Box.” …
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 alternative currency.
“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.
The gold 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.
