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Robin Griffiths - Silver is a Ten or Twenty Bagger From Here
With gold and silver and mining shares rallying strongly, today King World News interviewed one of the top strategists in the world, Robin Griffiths of Cazenove out of London. Cazenove Capital is the appointed stockbroker to Her Majesty The Queen. When asked about the recent strength in gold Griffiths responded, “The ‘Indian Festival of Lights’ and wedding season have contributed to this rally in gold. The other issue right now is the referendum in Greece. Is this just another way of defaulting and leaving the euro or not? Regardless of how this all pans out there is going to be more paper money around and gold hedges that.”
Robin Griffiths continues:
“There is no euphoria in the gold market at the moment. It’s not an over-owned trade. There are still a few gold bugs and prudent people who are using gold as a hedge against paper money being overprinted, but we are nowhere near the exponential, runaway move yet.
If gold were to fall back again, I would be willing to buy more and I do think that in the early part of next year we will be above $2,000. As you know, over time I have gold going hundreds of percent higher from here.
Until there is more confidence in gold, I don’t think you will find runaway confidence in silver. So on the slightly fickle trading swings it is just the higher beta play. I believe going forward that silver will be a ten or twenty bagger, one just has to tolerate the short-term volatility.
Capturing the short-term volatility is so hard to do, so I basically buy silver on the big dips. In other words, just live through the volatility. I don’t know of a better way of handling it than that....
Continue reading the Robin Griffiths interview below...
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When asked about the US dollar, Griffiths stated, “On the dollar trade weighted, the DXY (dollar index), it didn’t go lower than 75 and it is rallying again. I think this is correct, when the markets are in chaos, which they basically are, it is a period where the US dollar can have a significant rally.
The DXY made a base at 72 and had a first surge to about 81. There was then a pullback to 75 and that low should hold now. The dollar should go higher than 81 and I could see it running up into the high 90s on the DXY. That would be a significant dollar run.
People are still worried and the dollar, still, for the moment, is the world’s leading currency. Once they go into cash that’s what they go into. So I think we are in a period, from now until the beginning of the year, where you should be long the US dollar.”
When asked if a dollar rally would have negative implications for gold, Griffiths replied, “Not necessarily, when you are worried you buy a bit of both don’t you? Most people think of the price of gold as priced in dollars. One of the reasons why I don’t think gold is going to runaway at the moment is because I am quite positive on the dollar as well. So they will rise together is what I think.”
© 2011 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
Eric King
© 2011 by King World News®. All Rights Reserved. This material may not be published, broadcast,
rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
November 3, 2011
