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Gold Losing Its Shine for Investors?

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    Liberty Trading Group president James Cordier on the gold and platinum.

  • Duration 4:16
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Demand for gold is dropping and not just today -- This is investors opt for riskier trades as prices settled near six month lows has the precious metal lost its shine or is this a buying opportunity joining me now James -- -- he's liberty trading group president.

Is this much ado about nothing or is this a real moment where suddenly gold -- its six month lows.

I list we're basically looking at reallocation.

I'm so many investors over the last several months got scared into precious metals hearing about the European banking crisis in trillion dollar deficits.

And what we have found in the past is that the public.

There's notoriously.

Having a bad time difficult time holding on to assets when the stock market is rallying.

Obviously everyone -- -- about the stock market making new highs nearly every other day and we're seeing a lot of smaller investors selling their goal and sobering getting in the stocks.

But do you expect this in the short term or perhaps the long term to fall even more.

It's interest thing we think that this is just about run its course.

Two things that are gonna happen the next several months one is.

On the investment holdings are gonna transfer from small investors into larger investor's hands.

Certainly something that could prolong.

-- rally in the future and secondly other quantitative easing what's going on in China as far as of the currency printing and what have you.

That's gonna wind up being inflationary.

A little bit later this year.

We're likely to see crude oil prices well over a hundred dollars a barrel so -- -- -- gasoline prices Jensen Dubai here at 1634.

Yes we were buying today we buy and different fashions than some other investors do the GLB looks good platinum looks good right now I'm we like a selling options right now below the market.

We like creating basically.

Diversification by.

Selling puts having put short -- 200 dollars below the current price right now gives us a lot of room for the market to -- vastly which certainly it does.

But we think that the gold is can become a little bit later this year and I think we're trading probably fifty to 75 dollars below.

Currently the price that we're going to be seeing later this year.

With up platinum on the screen and while it too was down today the spread between platinum and gold as has gotten wider in and it's ever wants it up -- Moody's start to see platinum moved higher and and become more expensive than gold.

That's always seen -- in the near -- -- my question becomes is is that driven by auto sales -- know platinum is used in in a lot of auto production.

And is that something where we say we're climbing back near three year highs.

Should you stay away is getting a little rich here.

It is getting a little bit rich -- platinum however in the past has always led the bull markets and precious metals.

So the fact that the platinum is trading fifty to 75 dollars premium to gold is usually a good sign it always has been in the past.

Platinum supplies right now are certainly in question at a time when the automobile industry worldwide it's really starting to pick up.

Okay central banks and we -- on the lower third here bottom about a 145 metric tons of gold in the fourth quarter at.

Give us -- perspective on that do you expect that to be stepped up.

We all know that central banks work.

Together sometimes.

Calling each other 3 in the morning and saying what are you doing -- what are you doing but -- with a currency war although the IMF says there isn't one.

Going on and everybody's devaluing their currencies.

What's happening on the Central Bank -- with gold.

The Central Bank something interest -- that happened about a month ago was announced that Germany was calling in solid -- assets right thank you.

Bringing back I think you know start seeing yes I think in a start seeing a lot more of that in the near future.

On the fact that currency wars are really going to be stepped up here later this year.

Gold will likely become a currency again the supply and demand situation certainly the the demand certainly has been cut just recently some announcements that we're just made.

We see that coming back as their currency wars get in full throttle and of course of the stock market eventually.

Is gonna run out of some steam and I think some of the money will come on of that and go into precious metals platinum and gold especially -- a common goal will be watching -- chance court -- of liberty trading group president taking so much for joining us.

My -- analyst day.

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