Robin Griffiths - Gold Will Become the Greatest Bubble
With the gold market experiencing some profit taking, today King World News interviewed one of the top strategists in the world, 40 year veteran Robin Griffiths of Cazenove. Cazenove is one of the oldest financial firms on the planet and is widely believed to be the appointed stockbroker to Her Majesty The Queen. Griffiths had some extraordinary comments regarding gold during the interview. When asked about his recent trip to China and the speeches he gave in Hong Kong and Beijing, Griffiths responded, “When I went on to the subject of things like gold and was bullish about it, I got a standing ovation. So there is no doubt that it is a very popular investment idea in China and also, of course, in India. The Asians are likely to be the main buyers of gold in the remainder of this year.”

Robin Griffiths continues:

“When gold was over $1,900 it was too high, too soon. The deviation above what I would call a sustainable moving averages was too high. If there is a setback I would see that as another buying opportunity. I believe gold will become a bubble, possibly the greatest bubble I am going to live through, but it isn’t a bubble yet.



I think when you come to the very high net worth individuals, they are accepting now that we are in an era now where all central banks, not just the US Fed, are quantitively easing or printing money. It’s very early days for the pension funds. One or two pension funds are buying the same story, but at the moment it’s (the move into gold) being led by the high net worth individuals.

Later on you will see the pension funds come up to these sorts of numbers, 3% or 4% of the fund in gold related investments. Because pension funds need dividends, they would be slightly more likely to buy major mining companies than bullion. Eventually the income stream is what they will be after.

I think we are in the very early stages of the gold bull market....

“It is definitely not an over-owned trade and by the time it does get over-owned, we’re thinking way into the thousands, possibly double-digit thousands of dollars an ounce for gold before we get to the top.

If I had to make a list of the great bubbles I am going to live through, I think gold is going to be one of the big ones. All of the gold ever mined in history just fills one olympic swimming pool. There’s not enough for all of those Indians and Chinese and central banks to have it. It is just genuinely in short supply.”