The Telegraph: You’re insane if you don’t own gold, investors told

Asheron

You're insane if you don't own gold, investors told

Not owning gold during the current financial turmoil is "a form of insanity", according to an investment analyst at a leading City firm.



Robin Griffiths, a technical strategist at Cazenove Capital, told CNBC: "I think not owning gold is a form of insanity. It may even show unhealthy masochistic tendencies, which might need medical attention."


He added that the dollar was heading for "oblivion".

Mr Griffiths predicted that gold's 10-year bull run would continue and even intensify. "Although it's been a top performer for each of the last 10 years, it's still in a linear trend," he said. "Eventually it will go exponential and make more in the last little bit than the whole of the 10-year trend."


He said investors should regard any short-term falls in the gold price as a buying opportunity, adding that gold was still not an "over-owned trade".


His comments come against the background of the US Federal Reserve's huge monetary stimulus from quantitative easing, which many believe will result in inflation and a fall in the value of the dollar.

http://www.telegraph.co.uk/finance/personalfinance/investing/gold/8253166/Youre-insane-if-you-dont-own-gold-investors-told.html

Asheron

I thought you were insane if you did own Gold?

IronWolf

It must be true if a "city analyst" said it! Those guys are infallable

dunstonh

The Telegraph: You’re insane if you don’t own gold, investors told

Thats it. Thats the signal to sell.

The Mail said something similar about tech stocks when they were at 90% of their peak value before their bubble burst. As soon as you are told you are a fool not to have it, you should get as its only a matter of time. It may not be this week or this year but it usually indicates its on its last legs and you dont want to be caught out when that bubble goes.

DiggerUK

dunstonh wrote: »

Thats it. Thats the signal to sell......

So, based on some drunk from Fleet Street, you give some financial advice on gold!
Why did you and yours never advise clients to get exposure to gold when it was on the up. To dumb to see what you missed?

Loopgames

dunstonh wrote: »

Thats it. Thats the signal to sell.

The Mail said something similar about tech stocks when they were at 90% of their peak value before their bubble burst. As soon as you are told you are a fool not to have it, you should get as its only a matter of time. It may not be this week or this year but it usually indicates its on its last legs and you dont want to be caught out when that bubble goes.

I think I'll sell once you start advising people to buy;).

As you're advising people to sell that is a sure sign to continue buying:D

Also one point when the bubble does eventually burst it won't go down below $1400 per ounce. If history does repeat itself it will take a few years before it reaches the $1400 again (if ever) after the 'burst' assuming an exponential increase at some point as apposed to this linear pattern we're seeing.

tradetime

Taking your investment advice from The Telegraph, well I suppose it's an idea.

This would be the same Robin Griffiths who advised everyone sell the FTSE 100 in July 2010, that went well

moose88_2

Robin Griffiths has been saying this for years, yet no one has been paying attention to him, so The mainstream view is still very much "dont invest in gold"

purch

I thought you were insane if you did own Gold?

It a good club to be a member of.

IronWolf

moose88 wrote: »

Robin Griffiths has been saying this for years, yet no one has been paying attention to him, so The mainstream view is still very much "dont invest in gold"

huh? every man and his dog are investing in gold as far as I've seen, even had one guy in my office come in showing off his pathetic little gold crumb he'd bought, that was 'guaranteed' to go up in value forever

sabretoothtigger

tradetime wrote: »

Taking your investment advice from The Telegraph, well I suppose it's an idea.

This would be the same Robin Griffiths who advised everyone sell the FTSE 100 in July 2010, that went well

sell ftse in August 2009 and buy gold would have done well. Forget what they say to sell, its what they say to buy that matters more.

If he says sell dollars and buy gold that has some sense. Dollar is still valued higher then sterling was a few years ago.
So I presume from that perspective gold is cheaper for them then its become for us


The signal to sell will be when common people own gold. Nobody does really.

The tech bubble was known to be a bubble from 1996 onwards. I remember at the time they regularly for years said this value is wrong.

On the graphs you can see it takes off around 96, it faltered around the Asian crisis and LCTM was 98 also but then took off again before the final collapse


When they replace Ben with Volcker it'll be a signal to sell. - He just retired again after being largely diluted on every point

When they decide not to run a 1tn defecit that could be it

The debt ceiling argument might shake a few out with some kind of price fall but I think thats all talk. They dont know how to stop spending, their latest attempt was a -5% cut to Senators expenses. wow :laugh:

Charlie Munger, longtime right-hand man of Warren Buffett, recently dismissed "hoarding" gold, telling an audience, "Even if it works, you're a jerk."

http://money.cnn.com/2011/01/10/pf/investing/investing_in_gold.moneymag/