UBS Predicts Gold Unsustainable Above $930
July 08, 2008
UBS Predicts Gold Turn In 2008
Amidst plenty of bullist talk about the upside for gold prices, Allen Sheals of UBS spoke out today in Singapore about the possibilities of a bearish market turn. The two main factors driving Sheals comments were a break-up of demand and the forthcoming unloading of European Central Bank stock holds.
Sheals cited indications from the jewelry trade, pending Central bank actions, growing scrap supply, stable mining supply and an end to producer dehedging.
The massive numbers of investor dollars moving into Exchange Traded Funds and gold tied or based funds is also an indicator. Common sense should tell you that if you see a whole lot of people running frantically in one direction, you might be wise to calmly walk the other way.
My advice? Watch the Federal Reserve and Central Banks as they attempt to stem inflation. If they hit on a winning combination, gold and silver may settle down quickly.
On July 8, 2008 Alan Walsh
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On July 11, 2008 Kevin Brady-Jones
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