In a report this month, Goldman Sachs Asset Management advised high-net-worth clients to dump gold.
"[We've] shifted our stance on gold after years of being long," the report said. "We see gold as being vulnerable to central bank inactivity in the face of rising deflation risk."
Also this month, two of the Goldman's precious metals analysts issued a report advising that gold prices are on the rise and will hit $1,300 an ounce in the next six months.
Actually, I think both reports are wrong. The $1,300 forecast appears to be a short-term forecast. If anything, there is some potential downside risk in gold. Long-term, which appears to be the focus of the bearish report, gold is likely to be much higher given that at some point the money printing is likely to get very aggressive.
And pray tell, what would they recommend for us to buy instead...government bonds? Idiots.
ReplyDeleteKeep in mind that these guys are only in business today becuase government bailed them out from their self destructive investment strategies of the past.
Thanks I'll hold it all the way to zero if need be.
ReplyDeleteThe people at Goldman are anything but idiots. I wish they WERE idiots.
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