04/28/2017 - Incrementum Advisory Board Meeting Minutes: Central Bankers Cannot Afford To Let Risk Assets Decline
Heinz Blasnik:
“If I may add a quick point, I’m not actually as long-term bearish on gold as Frank. I’m just saying that many of the short-term macro economic drivers for gold do not look supportive, but the gold price is strong anyway. And I believe that these macro economic factors will probably become supportive in the not too distant future and that the market is already discounting this view. So I’m actually quite positive on the gold price in the medium to long-term. And I’m not even negative in the short term because the demand is there and the price is holding up. There is one more aspect to this, the assets that are most vulnerable to a sharp slowdown in credit and money supply growth are stocks and junk bonds because these assets have become the most expensive on the back of the expanding money supply. And if there is upheaval in these risk assets we will have problems in the banking system and regardless of what the money supply is doing people will look to gold because it’s the one asset that is not dependent on promises and is an effective hedge against trouble in the banking system.”
LINK HERE to download the Meeting Minutes
