The SPDR Gold Shares ETF popped 5% on the Brexit vote, lifting the yellow metal’s return to 24% for the year. Michael Parness, CEO of Trendtrade.com, said investors should stick with the precious metal as long as central banks continue to print money. ‘Governments are debasing their currencies around the world and there is virtually no chance that the Federal Reserve raises rates this year or even next,’ said Parness. ‘I believe there is a better chance we go to negative interest rates and in that environment you definitely want to own some gold.’ The iShares Silver Trust only rose 2.5% in the wake of Great Britain’s decision to leave the Eurozone, yet the industrial metal is up 28% year-to-date. Parness said he is betting silver will keep its upward trajectory in coming weeks as well, topping $25 an ounce in the next year. ‘Do you want to own the U.S. dollar or the pound sterling? No, you want to own gold and silver,’ said Parness. ‘And I am not traditionally a gold bug saying the world is going back to the middle ages. But in this environment, with fiat currencies being blasted by central banks there is very little choice.’ Outside of precious metals, Parness is bullish on R.R. Donnelley shares, up 7% year-to-date, saying the publisher will benefit from corporate restructuring. ‘R.R. Donnelley is spinning off two units and spinoffs generally are positive for a stock,’ said Parness, adding that the stock is technically set up to break out of its trading range. Finally, Parness continues to be negative on shares on Goldman Sachs even though the investment bank has already dropped 21% thus far in 2016. He said the lack of IPOs and drop in bond trading revenue will continue as long as problems persist in the greater market. ‘There is no IPO slate right now and next year is setting up to be just as tough,’ said Parness.
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