Tuesday, May 18, 2010

People in Fear...

Salam Emas!

Article bloomberg ini saya dapat melalui sahabat karib saya, Saudara Erzam Marlisah yang merupakan seorang "Trend Observer" dalam bidang emas. Boleh dijadikan panduan bersama.

 “All we can do is to put our money into real assets, because paper money everywhere is being debased,” Jim Rogers, the commodity investor who is chairman of Rogers Holdings in Singapore, told Bloomberg Television today.

Gold’s 14-day relative strength index, a gauge of whether a commodity or security is overbought or sold too heavily, climbed to about 75. To some technical analysts, a reading over 70 signals that prices may head lower soon

“Even though we believe the market is slightly overbought in the short run, it still has some way to go in case risk sentiment remains sour,” said Andrey Kryuchenkov, an analyst at VTB Capital in London.

Europe’s debt crisis “isn’t going to be that easy to fix,” said Gavin Wendt, senior resource analyst with Mine Life Pty in Sydney. Gold is being driven by “fear that even though they’re throwing a hell of a lot of money at this, it won’t be resolved and that these debt issues will continue to spread to other countries, primarily Spain and Portugal.”

“A bubble is forming with sovereign debt,” said Peter Sorrentino, who helps manage $13.8 billion at Huntington Asset Advisors in Cincinnati, adding that gold may soar to $1,800 an ounce within three years. 
“We want to hold gold as a reserve of wealth, because there’s a big devaluation of G-7 currencies ahead.”

Gold is expensive, but people in the euro zone are moving out of their currencies and forcing themselves into gold,” said Adam Klopfenstein, a senior market strategist at Lind-Waldock in Chicago. “There’s a lot of fear on the part of the Europeans that moves to mitigate their debt crisis will only lead to more problems. People want to be in the currency of last resort.”

“Every major government in the world has been reckless stewards of their currencies,” said Dailey, who recommends owning mining stocks over physical gold because of the potential for higher returns. “There’s a shift in investor psychology that gold is not a barbaric relic. It’s back to being a monetary asset.”

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