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Slump in Gold Prices a Buying Opportunity?

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  • Description

    ETF Securities Managing Director Will Rhind on the outlook for gold.

  • Duration 3:30
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Old taking another big hit today following another 25 dollars this is a sixth straight week of losses.

The longest slump for gold since 2004 but we have someone who says.

This is a buying opportunity there's a moment you don't wanna best will ride is a managing director of ETF securities so will I'm gonna play the devil's advocate here.

Why buy gold if the Fed comes out -- this big -- swallowed the notes of yesterday's meeting from their previous meeting that they're gonna stop printing money.

Before the end of 2013.

I mean that would seem to be very bearish for gold not bullish.

I think we look at that a trend of the last couple of years whenever gold has sold off.

There has represented a buying opportunity.

If we look at the Atlanta and -- on this well along on the Fed's announcement didn't that give you shivers as somebody who thinks gold -- gonna go up.

It if the -- work to raise rates this year than almost certainly that would be negative for gold.

We just don't believe that that is.

A very likely scenario -- effect the Fed doesn't have entire -- not -- by the way that I disagree with your position long but I just say that the Fed has realized it doesn't have the power of the used to -- used to have.

To turn around the economy or even.

To deal with -- interest rates we saw the ten year treasury yield go up to one point 9%.

If the yield on the ten year treasury goes over 2% is not also bearish for gold what -- -- on a very good job.

And anchoring interest rates at zero and they've still made it very very clearly want to keep interest rates as -- as possible to 2015.

And DQE -- stimulus programs active until -- get the unemployment rate down to an acceptable level.

Now even with the jobs numbers that are coming out now.

150000 jobs latest number they're clearly that is a good sign but it's still far from where we need to be my -- -- that level down I agree.

I just think that sometimes interest levels are beyond the reach of the Fed and we see that happen with ten year treasury.

On the other hand I agree with you that what we have coming up with the debt battle is -- be critical not only work.

The nation's future but also for the price of gold for it may be that the only way these guys -- -- -- deal with the debt battle is to decide to inflate their way out of it and that would be very bullish for gold.

Yeah I think the other thing to bear mind as of right now we're still in the holiday period.

Here remember that the physical gold market your house and -- back to full steam the Chinese with the biggest consumers all of gold in the world.

Still on holiday you know up until today and that has happened effect clearly on the volumes have -- in the -- market are the Chinese selling off right now coming back from holiday is that one reason why gold is going down -- -- -- because of -- not participate signal haven't suspect in the market because of the Chinese New Year holiday.

And clearly there -- big participant in the market and when liquidity levels.

-- lower in the market you tend to see some of these moves which might appear little bit more -- than they would have normalized liquidity environment OK well we got to run but at the end of 2013.

What do you think an ounce of gold will cost in dollar terms well be that is.

You have the million dollar question but I think that sound -- right now we're gonna go up from here I think that's right you know we have an environment which is positive for gold.

-- -- -- a rally in risk assets which almost certainly will benefit gold.

Wolf we have some kind of debacle over the cliff issue.

Which results didn't -- -- -- price through increased fears that the global economy will run good to see well thank you very much appreciate it.

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