By: Mike Hammer
Goldman Sachs, the famous vampire squid, is well-known for changing their mind about gold. Today in gold news, after 5 years of being bearish on gold, the bank has turned bullish on our favorite yellow metal.
It usually pays to listen to what Goldman says, partly because they tend to give hard data, and partly because you can use that data to make your own decisions. But we do not advise you to always follow their recommendations, as that can prove catastrophic. Instead, you should view Goldman as a source of information – keeping in mind that Goldman likes to “talk their own book” – and use their information to come to your own conclusions.
These days Goldman is talking about things like peak gold, and how the world may run out of mineable gold in 20 years. If correct, that might lead one to believe gold prices will rise; gold remains the most reliable store of wealth despite recent challenges from cryptocurrencies. Here at The Gold Enthusiast, we believe warnings of peak gold are premature, but we’ll take perceived higher value and rising gold prices any day.
Goldman goes on the record with two value buys which this Gold Enthusiast will avoid for now, preferring to find his own value plays, which usually don’t involve stretching gold news very far. You can read about Goldman’s current view and their picks in today’s featured article.