GOLD after BREXIT

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bumper
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GOLD after BREXIT

Post by bumper » June 28, 2016, 4:31 pm

The set isn't showing adjustment that would make we want to buy. But, Gold did as expected
Jun 2016 at 15:13 695 viewed0 comments
• WRITER: BLOOMBERG NEWS
SINGAPORE/HONG KONG - Gold may stand at the start of a major bull market should the UK’s Brexit vote prove to be a forerunner of greater political and financial instability around the world, according to Evolution Mining Ltd’s Jake Klein, a veteran of more than 20 years in the industry.
, on the day of the vote had a good indicator of how the vote would come out. So time to buy some and I did so far we are hlding our own on the purchase. Hope these guys are right
With the rise in uncertainty, investors are coming back to the market, the executive chairman of Australia’s second-biggest producer said in an interview with Bloomberg Television. “It is an alternate currency, it’s performed that role” as a haven for over 2,000 years, he said.

Gold has soared after the UK’s vote last week to quit the European Union as investors seek a haven from financial turmoil and contemplate the implications that may stem from the referendum. The surprise vote threatens to fragment the world’s largest trading bloc should Britain actually withdraw, while also calling into question the future of the United Kingdom as a country, with the possibility of Scottish independence.

“I guess to me, the most interesting thing is: are we seeing the first fault lines of a major correction and change in the financial and political systems?” he said. “If that’s the case, then we could very well be at the early stages of a major bull market.”

Bullion rally

Gold for immediate delivery rallied as much as 8.1% on Friday as the the poll results came in, for the biggest intraday gain since the global financial crisis in 2008. The metal, which traded at $1,317.15 at 12.32pm in Singapore on Tuesday, peaked in 2011 at $1,921.17.

Gold miners have soared in recent days. Evolution’s shares, which rallied as much 19% on Friday, have advanced 77% this year. In Canada, Barrick Gold Corp.’s stock closed on Monday at the highest level since 2013.

Banks have also been raising their forecasts for bullion. Morgan Stanley boosted its 2016 outlook by 8% and 2017 view 13%, according to a report received on Tuesday. Goldman Sachs Group Inc increased its three-, six- and 12-month targets by $100, citing flight-to-safety sentiment.

Not everyone is convinced that bullion will prove to be the best bet. Veteran investor Jim Rogers told Bloomberg on Monday he’d rather seek haven in the dollar than gold, given that bullion had already rallied in 2016 before the vote. Prices have risen this year as the US Federal Reserve failed to add to last year’s interest rate rise.

‘Long way to go’

“We’re obviously benefiting a lot from the gold price rise,” Mr Klein said. “I would point out that gold is only over $1,300 now, and in 2011, it was over $1,900, so there’s potentially still a long way to go. But certainly interest in gold, interest in gold stocks, and interest in Evolution is rising.”

Mr Klein said that Evolution would focus on improving the quality of the company’s portfolio, including investments, divestments and possible M&A opportunities. “We’re not looking to expand our asset base to beyond six to eight assets we see as the optimal size,” he said.

“Uncertainty and political instability is not something that I’m personally in favour of,” said Mr Klein. “But from a gold investor perspective and a shareholder of Evolution perspective, it’s certainly been very positive.”

In Bangkok, gold prices were adjusted five times as of 3.22pm on Tuesday for a net loss of 100 baht per baht-weight from the previous day, indicating high volatility.

The buying/selling prices of bullion were 21,850 baht and 21,950 baht per baht-weight while those of ornaments were 21,451.40 and 22,450 baht.
I reserve the right to be wrong, mispell words type badly. leave words out of sentences because my mind works faster then my fingers. To be an OLD GIT I've earned it

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