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Posted by on Jun 26, 2014 in ETF Strategist

Gundlach Likes Gold

By Roger Nusbaum AdvisorShares ETF Strategist

 
Jeff Gundlach from DoubleLine Funds gave an interesting presentation (you’ll need to register through the DoubleLine home page) a couple of weeks ago about currency debasement of the US dollar which should, by Gundlach’s reckoning, be bullish for gold.2014.6.26_Gundlach 1

The first slide captures the last 100 years but Gundlach goes into detail on the call about this pattern repeating many times through the course of history.

2014.6.26_Gundlach 2

Also relevant to Gundlach is the history of global reserve currencies; currencies don’t keep that status very long and the US dollar is well within the time frame where something could change.

The scope here is not to try to predict a monumental change in the global currency market (the Chinese renminbi is a controlled currency and the euro concept has proven to be very flawed and there aren’t any other currencies anywhere near big enough to be the global reserve) so much as to isolate the point that Gundlach is making which is that currency debasement should be favorable for the price of gold.

 

david@mediaworksllc.com

The AlphaBaskets blog provides frequent market insight and commentary by AdvisorShares Investments, LLC, created by AdvisorShares and other leading active managers.  AdvisorShares Investments is an SEC-registered investment adviser and the investment adviser to the AdvisorShares actively managed ETFs. The views expressed on AlphaBaskets should not be taken as investment advice or a recommendation for any of the actively managed ETFs advised by AdvisorShares.

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