TAMPA, Fla., Nov. 22, 2016 /PRNewswire/ -- James Cordier, Head Portfolio Manager of OptionSellers.com, says gold has fallen to value levels in the wake of the Trump election. Investors may benefit by positioning now for higher inflation and higher gold prices in 2017.
Cordier, who correctly predicted the downward move in gold prices on CNBC on July 6, 2016, says gold prices today may have reached a bargain price, and buying gold may now be a lucrative play for longer term value investors.
On Nov. 18, 2016 James Cordier reported on Closing Bell as follows: https://youtu.be/1A6O_Fu8_gc
- Gold Now at Value Levels: The Trump election saw gold prices tumble nearly 10% as the "risk off" trade was closed and the "risk on" vibe began, and then exuberant investors poured into stocks and out of "safe haven" investments like gold. This has dropped gold to value levels given the outlook for inflation next year.
- Rising Inflation in 2017: A Wall Street Journal survey shows economists project inflation at 2.2% in 2017 and 2.4% in 2018 – a considerable uptick from 2016's expected 1.8%. This could be a result of a strengthening global economy but is also the result of expectations for Trump's economic elixir: Lower taxes and massive infrastructure spending. Rising inflation has historically benefited real assets over financial assets. At present, real asset values are at ALL TIME LOWS as compared to financial assets (source: Barrons). This, even after thundering rallies in industrial metals such as zinc and copper – possibly the "canaries in the coal mine" of inflation expectations. There is no more real asset or pure gauge of inflation than Gold.
- A Less than Hawkish Fed: We see the final key to rising inflation and thus gold prices as a less than hawkish Fed – and perhaps much more dovish than most expect. The Fed, along with central bankers around the world, have been trying desperately for nearly 8 years to ignite a spark of inflation. Moderate inflation cures many ills for debtor nations. We do not expect them to quash it as soon as the green shoots of what they have been trying to grow finally appears. This in turn, should let inflation drift higher and pull gold prices with it.
OptionSellers.com projects Gold prices at $1400 per ounce in 2017 and recommends bullish longer term positions for value investors.
About James Cordier
James Cordier is Principal and Founder of OptionSellers.com, a wealth management firm in Tampa, FL. James and his firm specialize exclusively in the alternative strategy of writing options in the commodities markets. OptionSellers.com serves high net worth investor/clients from around the world, including the US, UK, the Netherlands, Australia and Dubai.
James' study of the commodities market began at age 14, when a silver coin collection sparked his interest in silver futures. He began his career at Heinold Commodities in Milwaukee as a broker in 1984. In 1999, having established a solid reputation within the industry, he founded an investment firm specializing exclusively in selling options.
He is co-author of the book "The Complete Guide to Option Selling" 1st, 2nd and 3rd Edition, (McGraw Hill 2015).
With over 30 years of commodities trading experience, he is quoted regularly on the futures markets in several national and international publications including the Wall Street Journal, Barron's, Forbes, MarketWatch and Reuters World News.
Darlene March - March Media Relations
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/james-cordier-optionsellerscom-says-gold-to-hit-1400-per-ounce-in-2017-300367214.html