British fund manager Ben Davies says that gold prices’ most recent collapse is part of central bank efforts to discourage Swiss voters from supporting the gold initiative to be decided at referendum on November 30.
Speaking to King World News, Davies adds that the risk and reward factors are now more favourable for gold than for any other investment:
“[Gold] is the only asset class in the world where the risk of a 10 percent loss is probably all you can see, and at the same time the upside is staggering.
“Should a ‘No’ vote result, it’s quite possible that we will get another chance to buy this market at lower prices.”
Prices recovered Thursday in European trade after a Swiss poll showed weaker support for the “Save Our Gold” initiative, which would force the Swiss National Bank to hold a fifth of its assets in the form of gold reserves and agree never to sell them in future.
Spot gold was trading at $1,189.10 an ounce, up 0.6% mid-morning Europe.
Gold futures for December delivery declined less than 0.1 percent to $1,193.50 an ounce in New York just before 10:00 am. Earlier, the price dropped as much as 1.5% and continues to behave erratically.
Cecilia Jamasmie
Email: cjamasmie@mining.com
Cecilia Jamasmie on
Cecilia Jamasmie, news editor at MINING.com, has over 15 years of experience in print media, TV, online media and public relations. She specializes in Corporate Social Responsibility (CSR) and the Latin American market. Cecilia has been interviewed by BBC News and CBC among others. She has also been syndicated by Forbes, Seeking Alpha and BIV. She holds a Master of Journalism (MJ) from the University of British Columbia, Canada, and she is currently based in Halifax, Nova Scotia.