But this..29 May 2020 15:59
http://www.profinance.ru/news/2020/05/21/bxsm-pravitelstva-mogut-zapretit-pokupku-zolota-chastnym-litsam.html
05/21/20 09:17
Governments may prohibit the purchase of gold to individuals
Governments may prohibit private ownership of gold if they lose control of inflation as a result of the coronavirus crisis, said Crispin Audey, one of Europe’s most famous hedge fund managers.
“No wonder people buy gold. But the authorities may try at some point to demonetize it, thereby abolishing the private ownership of gold, ”Oday wrote in a letter to investors. “They will do this only if they feel the need to create a stable unit of payments for world trade.”
Oday, a longtime critic of central bank politics, known for his apocalyptic forecasts, has increased his gold position in his flagship fund. Now, June futures accounted for 39.9% of net worth at the end of April. In late March, this figure was 15.9%. The largest long position in the stock market was its stake in Barrick Gold Corp., the second largest gold mining company in the world.
It should also be noted that after the March growth of 21%, in April the fund went negative by 9.5%.
Many proponents of gold fear that the government will confiscate their favorite asset. Such a precedent was already in 1933, when the American government forcibly bought gold bullion from the population as part of a strategy to devalue the dollar. Then the price of gold rose from $ 20.67 per ounce to $ 35, where it remained until the United States abolished the gold standard in 1971.
Now that major currencies are no longer tied to gold, governments seem to have no need to resort to such measures.
Oday, who compared the current pandemic to the Great Depression of the 1930s, argues that central banks will not be able to contain inflation when the economy recovers from the effects of quarantines. “The story is filled with examples when rulers in moments of crisis reduced coin minting,” he wrote.
She is not alone in her forecasts of inflation growth after the coronavirus crisis, although market indicators of inflation expectations indicate that this is far from the most common opinion.
According to the expert, high inflation will hit primarily long-term bonds and growth stocks. In support of his words, he cited inflation forecasts, ranging from 5% to 15% over 15 months. “I very much hope that the authorities will fight these trends, but most likely they will lose this battle,” he wrote.
Audey is known for his catchy comments and a bearish look at the market. In 2016, he predicted that British stocks would fall 80% due to the threat of recession and rising inflation after the Brexit vote. The following year, he advised investors to wait for the “Minsky moment,” referring to a term inspired by economist Hyman Minsky and describing the sudden collapse of the market.
Prepared by Profinance.ru based on materials from Bloomberg agency
On this topic:
Why the coronavirus pandemic made Tru
Sign In
Follow the stocks
