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2015 Will Be Good Year For Gold, Not For Equities – Veteran Trend Forecaster
By Sarah Benali of Kitco NewsWednesday January 14, 2014 4:30 PM
(Kitco News) - This may prove to be a good year for gold while not so good for the equity markets, said this 35-year veteran trend forecaster, adding that the metal should currently be trading at least 60% higher.
“We think the bottom [for gold] is already here,” publisher of the Trends Journal, Gerald Celente told Daniela Cambone in an interview with Kitco News. “We believe it’s a good year for gold, and not a very good year for equity markets.”
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| Gerald Celente, publisher of the Trends Journal |
Celente shared some trends he sees emerging in the coming year, one of which he has coined ‘The Grand Manipulation.’
“Gold should be over $2,000 an ounce,” he said. “[Central banks] will do everything and anything to keep the prices low,” he added, noting that the main reason behind this gold price suppression is to give the illusion of a stronger global economy.
“It is not in the best interests of the central banks to wake up the people who have been saying: ‘look, we’ve been printing all this digital money backed by nothing, printed on nothing, and it’s not worth much and that’s why gold prices are high,’” he said.
Using the dollar strength as an example, Celente said that the U.S. economy is not actually better off.
“There’s nothing to stabilize the dollar’s strength. We’re not seeing it in manufacturing, we’re not seeing it in production and when we saw the latest unemployment numbers – yeah, they created more jobs, but wages went down.”
Another trend highlighted by Celente is “Bankism” – as he refers to it – that emerged with the “too big to fail” financial firms during 2008 financial crisis. He adds only the banks are currently benefitting from central bank policies.
“Four words killed capitalism… ’Too big to fail,’” he said. “Now when you put your money in the bank, you get virtually nothing back because interest rates are so low…,” he added.
Celente added that he does not think the main issue facing global economies right now is deflation, but rather, a depression.
“This is not deflation, it is a depression. People cannot afford to buy products. That’s what happens in a depression,” he said. “Not enough people have enough money, and so the money is all concentrated in the hands of the few.”
By Sarah Benali of Kitco News sbenali@kitco.com
Follow me on Twitter @SdBenali
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