We know that by the year 2160 gold will be trading hands for pennies, but between now and then...
From Barron's Focus on Funds:
The King of Bonds is buying gold.See also:
Jeffrey Gundlach told attendees at the Inside ETFs conference on Tuesday that he added to his position in the yellow metal in recent weeks amid a “cyclone of major events” unfurling across the globe. Gundlach also said that Treasury bond yields could fall farther in 2015 and that oil prices are likely to remain stubbornly low for the rest of this year.
Gundlach, chief investment officer at $64 billion investment firm DoubleLine Capital, voiced optimism for gold in a sprawling presentation punctuated with nursery-rhyme analogies (pat-a-cake, pat-a-cake = European Central Bank monetary easing).
“Gold remains a safe haven in times of turmoil,” Gundlach said. “People have given up because [it was] boring and painful.”He added that gold price gains typically are reasonably good at predicting market volatility and quipped gold’s yield (zero) is higher than that of Swiss bonds. Payouts on Swiss government bills recently turned negative.
Gundlach said that the Federal Reserve is likely to raise interest rates this year, but also that uncertainty about the future of the European monetary union will drive demand and suppress yields. That’s a reiteration of what Gundlach told Barron’s in an interview last month. Gundlach was among the only market forecasters to predict that yields would fall in 2014. Still, he cautioned against flip-flopping this late into the bond price move:
“Buying bonds now, when you hated them last year, can only be called performance chasing.”Fallout from tumbling crude oil prices likely hasn’t manifested everywhere in the U.S. economy yet, Gundlach said, keeping him leery about junk debt in spite of recent price declines...MORE
"The Price of Gold in the Year 2160"
Chartology: Silver Just Crossed A Very Important Level (SLV)
We changed direction with the Swisscapades of Jan. 15 in:
Chartology: A Possible Trend Change as Gold Rises Above Its 200-Day Moving Average (GLD)
Following up on my earlier reasoned analysis, "*#$ @! Swiss".Here's the recent action via FinViz:
Feb. gold $1262.10 up $27.10....