Sunday, June 23, 2013

Nouriel Roubini The Gold-basher (translated from German)

Summarily translated from German at :

 The gold price will fall in the opinion of Nouriel Roubini 2015 towards $ 1000 per ounce.

An economic recovery will curb demand for the precious metal, which has increased over the past twelve years, said economics professor Roubini.

Lack of inflation and better returns on other investments such as equities were two of six reasons for a downward movement in the gold price, Roubini wrote in an article published on the website of "Project Syndicate" article. Since the beginning of the price of the precious metal has dropped by 16 percent.

After the gold price is sevenfold in the top since 2000, he is in a bear market since April. The unlimited creation of money by central banks to stimulate growth has indeed driven the stock prices in the United States to record highs, but not stoked inflation. This year, more money has been withdrawn from gold exchange-traded products than in the previous two years into it flowed.

Only gold as a hedge against "extreme risks"

"All investors should have a very small share of their portfolio in gold hold as a hedge against extreme risks of large losses," Roubini said in his article. "Other tangible assets can provide similar protection, and the risks of large losses today are certainly lower than at the height of the financial crisis."
Gold offers this year in the Standard & Poor's GSCI Index, which includes 24 commodities, the second-worst performance of silver. Since early January, the S & P GSCI has lost 3.9 percent, while the MSCI All-Country World Index of equities rose 7.7 percent. With U.S. Treasuries lost investors 1.2 percent, as an index of Bank of America shows.

The expectations for the inflation rate, measured by the breakeven rate for ten-year inflation-protected Treasuries has decreased this year by eleven percent and fell on 30 May at a ten-month low.
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