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Spencer Patton, Steel Vine Investments founder and CEO, on his outlook for the gold market in 2013.
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Now -- -- -- find investments founder and CEO.
-- I don't know whether to ask why are they doing this or what is it actually means so let's start with the why.
Why are they moving gold reserves and and they're moving them where to Germany.
That's right so they're bringing them back home and that's that's of the really interest -- part of the story is that -- showing a lack of confidence from the central bank of Germany and other central banks around so they're bringing it back from France -- bring it back from the United States and that's showing that Germany whose own GDP growth is slowing as having less confidence in the stability of the other central banks around so they're kind of circling their own wagons.
I think this is negative for the Euro it's negative for the confidence in the US economy.
I and it's it's a cautionary tale that that means that people are flocking to real assets which -- gold.
-- it's an important move but Spencer isn't everybody doing I -- -- from from the United States to the Bank of England with.
To to the European -- community itself everybody is printing money like crazy to -- trading so why bother moving it is everybody's doing it.
The rights -- -- bringing it home I think their own economy that -- Germany sees themselves rightly so is the only thing that's holding noted that the collapse and you -- of the Euro.
That's right so there -- there there -- seeing that if they have to -- -- if they have to move apart they're circling the wagons with their own gold to say that weren't able to take a stand here and so they couldn't do -- during the middle of the European crisis because that would have just -- the whole -- not mean everybody would have seen that -- them -- -- an -- calmed down a little bet they -- making preparations to be able to -- to circle the -- on their -- -- gold.
At 1679.
What's your call on it and -- time limit that you have on that.
Yes so I think over the next three months I think we could see gold get back into the seventeen hundreds of 1750 -- is about a 5% move is good if you look towards August 2011.
When we had the last debt ceiling debate gold and silver did very very well and I think -- Stetson and debate will be two times at least worse than what we went through there adding it's very likely will get some type of technical default where we get you know the privatization of payments made.
That's about a be bullish for gold and -- -- I would be buying here there's good support at this level I'm when I was last thought I was -- make sure you Biden gets -- 16100 and you know we're back towards that seventy -- -- -- close to that now although I'd like on the prioritize whose payments in spending it's about time they -- their order together.
But the -- let's talk about the Fed because nothing moves commodities like the Fed does are -- betting.
That the Fed will actually continue to print money in order to buy bonds beyond 2013.
Absolutely I think this whole conversation about the Fed ending quantitative easing as a total joke because what they've tied -- two is unemployment they said if it gets to six point 5% that's when they'll make a change.
And unemployment is not gonna get anywhere near that rate because the real unemployment rate if you really count the people that have dropped out of the workforce is much higher than seven point 87 point 9% were up in the double digits and so if you get a little bit of economic growth.
You're gonna have people come back yen and the unemployment levels are gonna get anywhere near six point five.
Spencer that we didn't even have a chance to ask you about Japan and all the money pretty they're doing over there that's probably gonna bring the price of gold next -- spreads their patents the alive investments founder and CEO of what targeting Spencer please come back soon.
Thank you thank you.
