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You know you'll is a look at gold grades it's.
Can't go any higher I'm not gonna died in that I'm not gonna die than now candor and -- not gonna that I -- And probably said that three years ago when it was around 800 dollars an ounce at 900 when it thousands -- OK that's it -- now.
It's it's up again another 28 plus blocks a -- -- 1822.
Dollars the ounce.
On and there it is dairy is -- that -- is that I like a lot of people.
You know -- mixed views of it but million dollars a guy and they're writing about it -- five.
Thousand dollars -- and that what is the kind of talked to get in the middle of a bubble.
I don't know but a -- -- smart and and I'm here to weigh in Wells Fargo.
Deputy chief investment officer Eric Davidson.
-- He does think this -- thing is a bubble on why Erica take it you're not in that minions old 5000 dollar the announced camp.
Right we think the -- has all the aspects of being a speculative bubble if it.
Looks like a bubble talk on the bubble walks on the global it probably is a bubble and can it go higher absolutely but investors -- really gotta be careful.
Because -- looks like a lot of what we saw with the housing bubble but the technology bubble and with the Nikkei bubble.
Here's -- those who are gold bulls tell me it's different but most Americans don't even -- it.
So that's a vast potential market of demand that hasn't been addressed.
And there there is a note that there's still not a lot of it to go around for that demand I mean I'm vastly simplifying it but but but in this -- in these jittery times it's a safe haven.
Right and it's completely understand what was the safe haven trade that -- -- the currency debasement trade.
You know the risk of either Armageddon now one.
Black tea Black Swan or the risk of out of control inflation on the other hand but there's this big middle called normal and if we if and when we do get to those normal times.
-- gonna suffer and so we'll -- -- Isn't normal but what is an appropriate valuation do you think Eric for gold.
Or what would bring it back to distort mean whatever that is.
What's important to remember earlier pushed up valuations -- because gold is tricky to value and and we get that gold.
As opposed other traditional investments and doesn't pay a coupon like -- -- doesn't pay a dividend.
Like a stock it doesn't pay rent like like a a good property for so that's a real problems filling -- some intrinsic value for jewelry and industrial -- but.
But beyond that is really just sort of this almost like the Fiat currency issue it really has value because people -- it -- value.
And what they what -- members -- gold and we'll try to remind investors as a gold and go down chemical further from here.
Absolutely but the downside risk is there let's not forget about it.
In 2008 gold dropped 30% -- with within the calendar year 2008.
And back in 1980 from a -- of 850 the lost.
Almost two thirds by 1982.
But you're right it did it's like apples -- -- when that is done what it's 57 bucks a share whatever.
And that then apple you know moved up to 20304050.
And people are saying you know that's that's a great run up of course.
You know hundreds of dollars later use those things he's would've should've -- I and and I'm wondering would gold in fact -- -- that much that's a bit from a lot of these gold commercials.
They might even advertiser bonds because I'm not sure but.
-- -- Sears is what they say is.
What is should Dakota they do it that it couldn't any of 2000 get out mr.
11100 get out -- -- well wanna -- up here we're close and on 2000.
What is that.
Yes that would should could and traps a lot of investors does you know bought gold at that -- top of the bubble in 1980.
In 1980 if you buckled 850 out.
I'll announce you're not that even until 28 years later in 2008 so.
That's what war warning investors -- don't get caught and that's speculative bubble if you owned gold.
Pat yourself on the back.
Give yourself a high five doesn't mean you need to take your exposure down to zero but why not trim off a little bit of your winnings and certainly.
Don't look to put too much money into gold at these levels now.
All right -- -- Davidson thank you very much.
All right thanks a lot -- okay --
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