Gold Bullion “Less Sexy” Than Bitcoin … For Now
GoldCore
GoldSeek.com
Thursday, 21 May 2015
– “There is a global financial bubble”
– Stock markets and bond markets at all time record highs
– Medium to long term, gold’s “fundamentals look very sound”
Wilfred Frost of CNBC:
Do you think markets are adequately pricing in the risks that are present around the world today, particularly in Europe and the gold price itself?
Mark O’Byrne of GoldCore:
No, I don’t think so. I think in light of the “Grexit”, which you just mentioned, and also the “Brexit” and the overall debt positions globally — we would have a concern that there is a global financial bubble with stock markets at all time record highs, bond markets at all time record highs.
Meanwhile, gold prices have traded sideways, as you said, for a long period of time. We have had a serious correction and we believe there is consolidation. It looks undervalued. At the same time it could go lower before it goes higher. I think technically there is a weakness there and I think there is support at $1140 so short-term there is weakness, quite possibly, but medium to long term the fundamentals look very sound.
Wilfred Frost of CNBC:
Do you think that’s because we have had a breakaway from the idea that gold remains a great hedge towards any risk that’s out there — whether that’s inflation, deflation or just big geopolitical crises or is it just because markets don’t understand that those risks are present and they are ignoring them?
Mark O’Byrne of GoldCore:
I think the latter…for the moment.
The Rest…HERE
