Blanchard & Co. Not Sure if Gold Will Experience the Summer Doldrums

NEW ORLEANS (Blanchard & Co) – As the economy enters the summer months with many important indicators flashing negative signals, including weak job creation, marginal overall growth, and a big question mark about the global debt crisis, this may be a year where gold’s seasonal dip is minimal.

“The gold market traditionally slows during the summer before charging upward over the last five months of the year, but we don’t expect to see any major seasonal price drops this year,” says David Beahm, Vice President of Marketing and Economic Research for Blanchard and Company. “There are very few places outside of gold right now where investors can find a safe haven for their money, so we expect a flight to quality to buoy both demand and price.”

As the U.S. struggles with its debt, many in the marketplace ponder what is next once QE2 runs its course. Blanchard sees stagflation asserting its presence and creating an environment that will make gold the most attractive investment where investors can safeguard and grow their assets.

“In April we predicted that the global debt crisis would likely create the exact scenario that’s happening right now,” Beahm says. “Many everyday investors have shied away from the stock market, and Wall Street has been spooked by employment numbers that came in far below expectations. People are looking for an alternative asset class to protect what they have, and gold is that investment.”

Blanchard sees gold strongly locked in the $1,480-$1,540 range over the near term with significant upside breakout potential as the dollar weakens and inflation increases. The company also believes new record highs will be achieved later this year and into the coming years.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: