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Robin Griffiths - Silver to Go Up Hundreds of Percent From Here
With the gold and silver markets steady, today King World News interviewed one of the top strategists in the world, 40 year veteran Robin Griffiths of Cazenove. Cazenove is one of the oldest financial firms on the planet and is widely believed to be the appointed stockbroker to Her Majesty The Queen. When asked about the action in gold, Griffiths responded, “The main point is it wasn’t a bubble and it hasn’t burst. Earlier, when the price was $1,900 an ounce, it was, in technical terms, overbought. It was too high too soon, actually trading 28% above the sustainable trend. The only slightly surprising thing is that it fell back to the trend really very rapidly.”
© 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 This material may not be published, broadcast,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.
September 29, 2011
Robin Griffiths continues:
“That just goes to show that when markets panic and people need cash, they sell whatever they can to raise the cash. So the good assets not only fall with the bad, they often fall quicker than the bad because it’s easier to sell something at a profit.
Right now the long-term trend line is just under $1,600. The lowest intra-day gold price recently was $1,550. I think if we get, in the next few weeks, an opportunity to buy at $1,550 again we should take it. In India, the wedding season begins on the 23rd of October and that is usually a seasonal low for the metals.
So we’ve got a few weeks ahead of us where we might get a chance to buy some really cheap gold. But don’t panic out of gold because absolutely nothing has gone wrong with the long-term story. The lowest low for gold may already be in place, but if we go between here and the end of October that would be a good length for the base, so let’s say three to four weeks max.
In China, the Chinese authorities have officially encouraged their people to buy gold for their pension plans. We are also looking for the Chinese Central Bank to up its reserves from 2.5% to 10%. China has been quite shrewd and if the open market wants to supply some gold at a good level, China goes in and acquires it. Basically the demand will be there....
Continue reading the Robin Griffiths interview below...
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When asked about silver specifically, Griffiths stated, “Of course the volatility in silver is absolutely brutal, even when the VIX index is comfortably below 20, the volatility is still large. Now that the VIX is up at 45, you can expect the price of silver could move 10% in a day and I don’t think it means anything.
Ultimately it will go where gold goes long-term, but at a leveraged rate. So the prediction now would be for the coming month it may well have some high volatility, but longer-term it would be a buy. If one could buy into silver at anything in the high 20’s, so $28, $29 area, I think you’re getting some cheap long-term silver. I think silver is going to go up hundreds of percent from here over time.”
When asked about the mining shares, Griffiths replied, “In the shakeout, of course, the ones we follow here in England or the biggest in the FTSE are the Billiton’s and the Rio’s and they are trading at approximately five and a half times earnings. If value investment means anything, if you can’t buy some of the world’s best franchises on five and a half times earnings, then the game is over isn’t it?
I think you will find when people come in late October to buy the market, seasonally that is when they would come in, then the Rio’s and Billiton’s will be on the list of premium blue chips, which really are profoundly cheap. One can live with those because you’ve got the value, even if you make a muck of the timing in the short-term.”
© 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
