Martin Murenbeeld: Now is Not the Time to Sell Gold

TL;DR

Despite a challenging third quarter, gold investors are advised to hold their positions as the market is expected to stabilize and potentially rise in the future.

Transcript

I'm no cover shot with investing news network and I'm here at day two of the minds and money conference in Toronto and I'm here with Martin Miran beeld of Muir and Bill & Co how are you today I'm very well thank you great and how's the conference going so far great I had a presentation this morning and he spoke for some 40 minutes which went well I... Read More

Key Insights

• 😮 Gold faced challenges in Q3 2019 due to a stronger US dollar, rising equity markets, and higher real bond yields.
• 🥹 Holding gold provides insurance and diversification in a portfolio, allowing investors to benefit from potential future price increases.
• 🧑‍🏭 Factors such as supply stabilization, changes in US monetary and fiscal policies, and the global debt crisis could impact gold prices in 2019.
• 🏅 Central banks, including Russia and China, are increasing their gold reserves, signaling a shift towards gold as a store of value.
• ☺️ The US dollar's current trend of rising due to restrictive monetary policies and relaxed fiscal policies could potentially be reversed as trade tensions continue.
• 🏅 The speaker advises against selling gold positions now, as it may be near the market bottom, and encourages a long-term perspective on gold investing.
• 🙂 A slight devaluation of the US dollar and potential hiccups in equity markets could have a positive effect on gold prices.

Questions & Answers

Q: Is now a good time for gold investors to sell or continue to hold their positions?

The speaker advises against selling gold positions at the moment, as they believe it may be near the bottom of the market. Holding gold provides insurance in a diversified portfolio and can yield positive returns even if the gold price doesn't rise.

Q: What advice does the speaker have for gold investors during the current market?

The speaker recommends staying the course and adopting a long-term perspective on gold investing. While it's challenging to time the market, investors can consider rotating between different gold companies and bullion based on their preferences.

Q: What are the key factors that could affect gold prices in 2019?

A stabilizing mine output, potential changes in US monetary and fiscal policies, and the global debt crisis are identified as key factors to watch for in 2019. A slight devaluation of the US dollar and a shift towards easier monetary and fiscal policies could positively impact gold prices.

Q: What does the ongoing shift among central banks towards gold mean for the gold sector?

Central banks, particularly in Russia and China, have been increasing their gold reserves. This trend is driven by concerns over the US dollar and potential restrictions on financial transactions. It indicates growing confidence and interest in gold as a store of value.

Summary & Key Takeaways

• Gold faced difficulties in the third quarter due to factors such as a stronger US dollar, rising equity markets, and higher real bond yields.

• The speaker advises gold investors to hold their positions rather than sell, as gold serves as insurance in a diversified portfolio.

• Looking ahead to 2019, factors such as supply stabilization, potential changes in US monetary and fiscal policies, and the global debt crisis could impact the gold market.