Monday, 19 January 2015

Nomi Prins: Oil Loans And QE - Gold Will Increase Gradually in 2015.

  This coming financial shock with bad loans after the Oil Crash can be even of a larger magnitude than the subprime mortgage crisis in 2008. Gold market is finally allowed to reflect at least the possibility of this increased risk in the financial system. 

"Former top Goldman Sachs banker Nomi Prins is bullish on gold, but you’re going to have to be patient. Prins contends, “This shift to the dollar going down, I think, will be more gradual. For the same reason the dollar stays strong is the same reason gold has done okay very recently but hasn’t had this major outbreak. . . . Gold will increase this year--also gradually for the same reason the dollar will not dump but could decrease gradually as QE and all these maneuvers play out. I don’t really think this is going to be that breakout year. The markets are going to go down because of the end of all this artificial aid, but we also have been underestimating the aid that gets continually dumped into the markets and into these banks. That’s where the timing is critical to look at. . . . There’s going to be a negative market. There’s going to be a downward impact on the markets. There’s going to be an upward impact on gold. All of that will happen. It’s just not going to be as huge this year. It’s going to be a more gradual working into that this year.”

"Last week Swiss Shock has UnPegged the gold market and Gold is in a breakout now. China shows no slowdown in its accumulation of Gold. What Chinese know the others don't? Please visit Koos Jansen at GoldBullion for more insights on the Chinese Gold market. The real turnaround in Gold sentiment will come after $1,350 level, it could happen fast now. All eyes will be on the ECB next week. These level of beaten into the dust junior miners will not be forever: HUI has cleared 200 level and has a very strong breakout pattern now. Read more."