Investors still extremely bullish on gold
The crisis which the world is in right now is a global crises and not one emanating just from the Eurozone, says Johann Santer the COO of Superfund Financial India Pvt Ltd.
In an interview with CNBC-TV18, he says the inter-dependence of global markets is what has led to this crisis. He sees a very tough road ahead for stock markets.
From the commodity space, he is extremely bullish on gold and advices his investors to remain invested in the yellow metal. He expects gold to touch USD 3,000 per ounce in the next couple of years.
Below is an edited transcript of his interview. Watch the accompanying video for more.
Q: What is your position on India?
A: Generally speaking, it’s a difficult year for any equity market regardless of developed economy or emerging market, regardless of India, China or the Eurozone. What we can see of course is that the emerging markets have been driving the last major recovery in the equity sector but also the volatility is certainly higher in India.
In the long run, we are certainly positive for the Indian economy. For a short view, we definitely are overweight commodities in our portfolio rather than recommending to our client’s long only strategies in equities and also regardless of the geographical area.
Q: You have linked your fund performance to the performance of gold. Does it pay to even get long on gold at this juncture? Are there any levels you are looking at in the next six months?
A: Regardless of the price, we recommend our clients to look at gold. We don’t believe gold would be overpriced at the current level of trading around USD 1,700 per ounce. Our mid to long-term price goal is USD 3,000 per ounce within the next two to three years. We started investing in gold when gold was trading at USD 470. At this stage, we see with all the re-flationary methods that have been taking place around the world that commodity prices, especially, gold being quite a special commodity in my opinion can only lead higher in the next few years.
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