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Matthias Knab, Opalesque: Sprott Asset Management writes on Harvest Exchange:
During 2016, gold markets shook off three consecutive years of price weakness. However, the gold complex suffered meaningful correction during the fourth quarter. As is frequently the case in the gold sector, short-term sentiment is generally more reflective of recent price action than underlying fundamentals. Despite the recent pullback, we believe the investment opportunities for gold remain compelling. Our investment thesis for gold does not involve financial Armageddon, Weimar Republic inflation or a collapse of the U.S. dollar. Rather, inevitable resolution of epic monetary and financial imbalances is likely to accelerate the rate of capital migration from global financial assets towards gold and other precious assets in the relatively near future. Given the comparatively tiny stock of investable gold, we expect gold's price to stabilize at significantly higher prices.
The motivating fundamental which powers our gold investment thesis has been the progressive decoupling in recent years of financial assets (claims on future output) from underlying output itself (GDP). In essence, the United States economy suffers from a debilitating structural debt problem.
Gold's Prospects in 2017 and Beyond
Over the short run,...................... To view our full article Click here
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