What Are The Outlook For Gold And Gold?

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What is the outlook for Gold & Silver? Despite the recent rally, which was caused by the uncertainty in the stock market and the rising risk of a currency crisis in various countries, the supply and demand economics suggest the gold could decline from $1240 to $900 or less per ounce by the end of 2018. Gold is usually inversely correlated to the stock market and this explains the recent excellent performance of the gold. However, this recent spike can be a trap for investors. One of the largest asset managers on Wall Street, recently, placed about 20% of their asset portfolio in gold and several investors are following in his footsteps. This is such a highly speculative trade. In our opinion gold should not exceed 5% any asset portfolio. I…show more content…
As for Aluminum, we could not find a single public company listed on US exchanges that is profitable and growing, so I would avoid the sector all together. Off the record, despite the steep decline in aluminum stock prices and the appearance of an opportunity, Alcoa (AA) is still overpriced, I would still wait until end of 201 to see how the economic curve is shaping. Just because Alcoa stock declined sharply, it does not make it a good investment. On the other hand, if it the price drops close to $5, its cash flow improves and the debt does not increase, I would be interested in buying. If you see a rise in the prices this year, it will be thanks to the ETFs and contrarian investors rather than the fundamental value of the company. Has the Oil Bottomed Yet? When everyone else was saying the oil prices has bottomed in 2015, we advised our clients to wait. The oil prices went from $40 to $30. Despite the recent rally, the supply and demand economics suggest that there is a possibility that a barrel of crude oil could hit $25 this year or next. But we should not that there is more to the oil prices than economics. If the OPEC agrees to production cuts, you could see the price double within one year. That is the time to invest, not before that. We saw some of the best investors and hedge funds fooled by the drastic decline in 2015 and they jumped with a lot of cash on oil companies. Their performance
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