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Griffiths continues:
“Gold is not in a bubble, gold is in a linear uptrend and has not gone bubble-like at all. It’s not an over-owned trade. Some people have switched from bullion into the mining companies on the grounds that bullion itself is overbought and the mining companies are definitely oversold. So they are being highly tactical.
I think in the case of silver, which of course had a huge catch-up move with gold and then had a shakeout after that because it moved far too fast, the low of that correction period is in and I think we’re within days of the correct moment to be buying back into silver again.
When asked about the mining shares Griffiths said, “I think they’ve nearly been pummeled, for example Newmont is nearly at the low of its trading range. There is a factor, a real fundamental factor here, although the price of bullion has gone up and up and up, the mining companies have a great deal of difficulties controlling their costs. Therefore their profit margins are under pressure. I was in South Africa just the other day where some of the richest holes in the ground exist, but the miners have to go down four kilometers and then along seven kilometers to get to the seam....
Continue reading the Robin Griffiths interview below...
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“It can take them two hours out of each working day to get to and from the place where they do the digging. So there’s no way they are going to be making money out of that just yet. The price of bullion needs to go way higher before the stocks themselves start to fly...The day will come when the mining companies take off, but that’s in the future still.
When asked about commodities Griffiths stated, “The secular trend for commodities is upwards and it’s linked to the secular uptrend in Asia, therefore the secular trend is also linked to them (Asia), and as China is in the cooling down mode it will be ordering slightly less copper and other commodities going forward. They are going to have a cyclical correction. And if you say, ‘Well then what about foods?’ Their cyclical correction is jolly nearly over.
The fact is going forward from here many countries will have great problems feeding themselves, so we’re in a real roaring secular uptrend in anything connected with growing food. So I would separate the softs away from the harder commodities. Then I think within that I would stop regarding gold and silver as being commodities, I would treat them as a form of money...they are both basically money and will behave as money rather than as a commodity.
When asked about the civil unrest in Greece and what the means for the Euro Griffiths replied, “I think the Euro will survive, just as the dollar is going to survive, but at some point it won’t include the Greeks anymore. Probably in a year or just over a year’s time there will be an orderly removal of Greece from the Euro zone.”
The KWN audio interview with Robin Griffiths is available now and you can listen to it by CLICKING HERE.
© 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.
Robin Griffiths - Buy Silver, The Lows for the Correction Are In
With gold stabilizing at $1,500 and silver near the $34 level, today King World News interviewed one of the top strategists in the world, 40 year veteran Robin Griffiths of Cazenove. When asked about the action in gold Griffiths had this to say, “I think the long-term trend for gold is absolutely in place and the final high is so far higher than we’ve been that there’s nothing to worry about. However, in the short-term it became overbought and it’s very likely to fall back to its 200 day moving average which is in broad numbers $1,400.
A shakeout to there ($1,400) means nothing significant at all, it’s just eliminating an overbought situation. The long-term, what I call the prime uptrend is still absolutely in place, and for as long as central banks create too much paper money that’s going to remain the condition.”
© 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.
June 28, 2011
