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Brexit is no cause to buy gold but likely devaluations are, Lundin says
Why Gold May Hit $1,500 by Year's End -- and It's Not Just about Brexit
By Myra P. Saefong
MarketWatch.com, New York
Friday, June 24, 2016
Gold's impressive rally Friday offered a taste of what may be in store for the precious metal, as some analysts say it's just a matter of time before prices top $1,500 or even $1,900 an ounce. ...
But expectations for more rallies in gold aren't just borne from the Brexit news. What happens in other markets, including equities and currencies, will impact gold's outlook more directly.
Brexit is "a global monetary event, with destructive effects in individual economies," said Brien Lundin, editor of Gold Newsletter.
"The standard central-bank prescription is to ease, to depreciate their currency," he said. "But if everyone is trying to depreciate their currency, including the U.S., what can they depreciate it against?"
"Only gold will stand tall during the turmoil. And over the long term, it won't because it's supposed to be a 'safe haven,' but because it's the only safeguard against fiat currency depreciation," said Lundin. ...
There is "no reason" for gold to rise on such as event as Brexit itself, said Lundin. Such "geopolitical flashpoints" are short lived." Instead, sustained gains for gold are "based upon currency debasement almost exclusively," he said. ...
... For the remainder of the report:
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