PFM Trading says that gold prices are unlikely to retest 2015 lows and advises clients to buy on price pullbacks.
The surge in the price of gold so far in 2016 has “impressed” strategists at Shenzhen, China-based broker-dealer and wealth manager, PFM Trading.
The firm has been bearish on the precious metal since 2012 and has spent much of the last 3 years holding various short positions in the spot market preferring, instead, to hold e-commerce, social media and technology stocks in emerging markets and mid and large capitalized stocks in Europe and Japan.
The metal’s performance since the Federal Reserve rate hike, however, has led the PFM Trading’s Vice-President, Edward Gold, to review his outlook on the metal that carries his name.
“Everyone expected gold prices to sink after the rate hike in December but prices performed a textbook buy-the-rumor-sell-the-news move and actually began rising,” he said. “There’s a definite sense in the market that all is not what it should be in the global economy. Debt levels are far worse than they were at the start of the 2008 financial crisis and investors suspect there’s very little the central banks will be able to do about it this time around if everything blows up.”
Gold prices have risen 18% in US dollars, becoming one of the best performing assets so far in 2016. Gold has told clients to rotate out of US stocks and take some risk off the table. He has recommended that institutional clients gain exposure to the bullish outlook for gold by acquiring holding s in the SPDR Gold Trust ETF.
“We’ve advised PFM Trading ‘s private clients to hold gold in physical form so they should be buying either bullion or coins” said Gold.
About PFM Trading, Inc.:
PFM Trading, Inc. is an independent investment and wealth management practice based in China, and staffed by consummate professionals with a verifiable track record of success in the global financial markets. As at 1 January 2013, PFM Trading managed over $3.5 billion of assets on behalf of esteemed clients around the world.
Here at PFM Trading, we enjoy an enviable reputation within the wealth management community. To others, the phrases “unique approach” and “due diligence” represent no more than marketing-speak but to us, they are a code: a code that is indelibly inscribed upon every part of our organization.
PFM Trading, Inc.
New World Centre,
No. 6009 Yitian Road,
Futian District, 22rd Floor,
Shenzhen, Guangdong, China, 518035
Phone: +852 5808 4324