Gold is up 26% thus far in 2016 and heading into the fall the greater risk remains to the upside due to the tremendous amount of money sloshing through the system, said Josh Crumb, founder of Goldmoney. ‘The last couple of years the expectation was exiting monetary policy and raising rates,’ said Crumb. ‘And after China and oil and credit problems in the first quarter, the market realized that it is going to be very hard to exit this liquidity trap and that’s when the market revalued gold back to where it was a few years ago and I still see that asymmetry.’ Goldmoney is a full-reserve and gold-based financial services group, operating the world’s largest self-directed gold savings and payments network. Goldmoney makes allocated physical gold accessible as a currency to any person or business with internet access. And currently has over one million user signups from over 200 countries and $1.8 billion in client assets under administration. ‘With our platform you can buy $100 a month worth of gold, just like you used to put in a savings account – back when you actually had interest rates,’ said Crumb. Crumb said the potential Federal Reserve interest rate hike this September will not hurt gold prices because gold prices are a function of historically low real interest rates. Also helping the yellow metal, in Crumb’s view, is the dislocation in the currency markets, especially post-Brexit. ‘How many currencies have been devalued in the past six months?’ asks Crumb. ‘From Brazil to Nigeria and many in between. I think this currency volatility is at the beginning and we are not close to the end yet.’ In terms of new supply hitting the market and knocking down the price, Crumb says gold will generally remain immune. ‘The demand as a safe haven is going to continue to outstrip any incremental supply as long as we are pursuing experimental monetary policies indefinitely,’ said Crumb.
Subscribe to TheStreetTV on YouTube:
For more content from TheStreet visit:
Check out all our videos:
Follow TheStreet on Twitter:
Like TheStreet on Facebook:
Follow TheStreet on LinkedIn:
Follow TheStreet on Google+:
source
