Goldman Sachs advices to buy gold

Buy gold! This advice did not come from me, it came from the investment bank Goldman Sachs. In the past, Goldman Sachs was not known for being a big fan of gold. In 2015, the analysts still expected prices below $ 1,000. But meanwhile, the need for gold as the currency of last resort has obviously been recognized. Goldman Sachs is currently advising its customers to buy gold.

 

Gold suffered

Like all other assets, gold suffered from investors’ urge to flee into the US dollar. And the gold price has dropped from over 1,700 to only 1,460 dollars, around 12 percent. “We have long argued that gold is the last resort currency that serves as a hedge against currency devaluation when policymakers act to counter shocks like the one we are experiencing,” said Jeffrey Currie, commodities director at Wall Street Bank, Sprott’s support from Sprott Asset Management’s CEO John Ciampaglia, is currently comparing the situation to that of 2008/2009, when gold prices rose even after central banks started their QE programs to have.

 

Significant potential

The gold price should still have significant potential in the current year, but in the short term weaker prices have to be expected again after the past two days. Investors should use a potential reset to buy physical gold and well-positioned gold producers. However, there is currently a bottleneck with physical gold, which should be temporary.