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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (18524)	5/18/2016 7:34:16 AM
From: Goose94	Read Replies (1) \| Respond to of 203362

The world’s largest asset management firm is expecting Gold to continue to shine in a world that is a flooded with negative interest rates; and, no one really noticed. In a commentary published Tuesday, Russ Koesterich, head of asset allocation for BlackRock’s Global Allocation Fund, said that in a world where investors have to pay for the “privilege” of holding government debt, more interest is turning towards Gold, an asset class that provides no income. Although he admits that Gold -- because it doesn’t fit as a classic commodity or currency -- can be difficult to value; however, he added that now could be the perfect time and place for Gold. “The best years for Gold were those in which real rates were low and inflation was rising. Since 1971 there have been 12 years that fit that description, as Bloomberg data shows. Gold rose in 11 of those 12 years with an average return of over 35 percent,” he said in the commentary. Tuesday, June Gold futures settled the session at $1,276.90 an ounce, up 2.90 on the day. Currently up Gold prices are up more than 20% on the year. If gold achieve a 35% return, highlighted by Koesterich, the price would end up pushing above $1,425 an ounce. “This is exactly the type of environment that has historically been most favorable to Gold,” he said. Koesterich isn’t just talking a big game, the firm invested heavily in the Gold market in the first quarter of 2016. According to SEC filings, BlackRock Inc. significantly increased its exposure in the world’s biggest Gold-backed exchange-traded fund SPRD Gold Shares (GLD-NY). According to the company’s filings, in the first quarter BlackRock Inc. held a total position of more than 145,000 shares of GLD, valued at more than $14.4 million, up from 34,030 shares valued at $3.45 million from the fourth quarter of 2015. So far, major media outlets failed to cover the news. BlackRock Advisors, a subsidiary of the firm, also saw an increase in its holding of GLD. The private investment arm increased its holding to 10.36 million shares, valued at $1.2 billion, up from 1.94 million shares, valued at $196.7 million. Last quarter, GLD saw its largest inflow in 7 years, totaling $7 billion. By Neils Christensen