T-SEC, GOLD ANALYST
BEARISH ON GOLD. Believes investors should be wary of gold equities that won’t bottom out until the JSE’s gold index is around 1 400 points. “Then it’s a buy.” It’s currently at about 2 700 points.
“The exchange traded fund is artificially holding the gold price higher. But it’s a helluva dangerous instrument because investors start believing gold is going up and when it doesn’t they become speculators. Jewellery demand is not good and the recycling of gold from scrap is coming back into the market. And the gold shares just aren’t performing. That’s telling us something.”