With the price of gold surging nearly $20 on Friday, today a top advisor to the most prominent sovereign wealth funds, hedge funds, and institutional funds in the world, told King World News that gold and gold stocks are going to shock investors by becoming the new momentum plays.
October 10 (King World News) – Michael Belkin: “I’ve been long the U.S. dollar for about 18 months. I’m now increasingly short the dollar. We could get a shakeout in the dollar and that could really bring the gold price alive. The gold price itself keeps getting whacked out of left field. You get these entities smacking the gold price down in the middle of the night in order to send a message to the markets. I don’t think that’s going to work (anymore).
Global investors are now getting squeezed out of their long equities and long junk bonds, and so a lot of these hedge funds are down big on the year. They (hedge funds) are desperate for gains and as gold and gold stocks start to rise, I believe that gold stocks will turn into the new ‘momentum class.’
It sounds almost hilarious to say that now because gold stocks are so depressed and they are so far from being momentum names, except for the one I recommended that is up 1,000%. But when nothings else is working for institutional investors, they will begin to flock into the thing that is working, and I think that will be gold and gold stocks.
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