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Mainstream Media & Banks Warm Up To Gold

Mainstream pundits apparently are warming up to gold. A number of recent bank reports, as noted by NewsMax, have viewed the metal’s near term future somewhat optimistically. Moreover, on the television characters like Jim Cramer have been positive on gold.

For instance, UBS recently asked in a bank report: “Time to warm up to gold?”  UBS states that the market will turn around in gold.

“But the possibility that the market may be overestimating the terminal rate suggests that current weak sentiment and price expectations may also be overdone,” UBS analysts stated. “Positioning has declined considerably over the past couple of years and has now become very light. There may be an opportunity, especially for long-term oriented participants looking to diversify portfolios, to rebuild positions at more attractive levels.”

“Any further downside is likely to be contained, and we expect the market to ultimately find stability, which should provide the foundations for a moderate recovery over the coming years.”
HSBC also recently wrote positively of gold: “It has managed to hold above and build on gains over $1,100/oz. and in non-USD terms, it is back above EUR1,000/oz.,” the bank stated.  “The recovery in oil prices, which … if sustained, may lend additional support to gold. Chinese demand, as indicated by persistent Shanghai premiums, implies decent levels of imports of gold into China. This is offsetting the slowdown in Indian demand. Retail demand for gold and silver coins is also strong. On the negative side, we are unsure about central-bank demand, at least at the moment.”

According to Commerzbank, “Switzerland exported 173.9 tons of gold in August, 8% more than in the previous month. Nearly 70% of this total was shipped to Asia…50% more gold was exported to China. Exports to Hong Kong were actually more than twice as high as in July, which suggests that China also imported more gold from Hong Kong last month.”

“Increased gold demand in India and China should lend support to the gold price,” said the Commerzbank report. On CNBC recently, a trader outlined why current economic conditions could be good for gold.

In the following video, Jim Cramer – popular amongst gold bugs for his negative view of the metals – seems positive on gold prospects.

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