Goldman Sachs: Gold is better than government bonds

Many central banks’ departure from the dollar is one of the strongest arguments for Goldman Sachs manager Jeff Currie to buy gold. His colleagues expect a rise in gold prices to $ 1,600.

 

Goldman and gold

Jeff Currie has been head of the commodities department at US investment bank Goldman Sachs for many years. He repeatedly appears in the financial media with pithy comments on gold and gold prices. So he advised investors in April 2016 to bet on a falling gold price. And even before the Flash crash in 2013, there was a sell recommendation from Goldman Sachs (Goldman Sachs does it again: “Sell Gold”)

 

Positive comment

Now, Currie has been very positive about gold over the past few years. So also in a recent Bloomberg interview. His brief analysis: In the context of a lower risk appetite among investors is currently less invested and saved more. The higher savings rate promotes investment in gold and bonds. However, he sees the gold demand of the central banks as the most important factor with regard to the gold price development. Numerous central banks increasingly separated from the US dollar as part of their currency reserves (keyword: Dedollarisation). And as a result, central bank gold demand devours 20 percent of global gold supply. More here: Gold bought: These countries have struck!

 

Gold price target 1,600 US dollars

Currie, in a baseline scenario, forecasts that central banks will demand 750-ton gold this year. Currie also favored gold over government bonds, because bonds can not reflect the trend towards dailollarization. Meanwhile, Goldman Sachs analysts have recently confirmed their positive gold price forecast again. Within 12 months, the price is expected to rise to $ 1,600 per ounce.