Newmont beats quarterly profit estimates on higher gold production
The world's biggest gold miner benefited from robust production and easing costs.
Gold and commodities entered a drawn out bear market five years ago and there are many more years of pain to go, says John LaForge with Wells Fargo.
“The reality is gold is a commodity and commodities have entered a long bear market,” said LaForge who was interviewed by CNBC in July. LaForge is the head of Real Asset Strategy at Wells Fargo.
“Traditionally those long bear markets for commodities average about 20 years—and that is using data back to 1800—and we are only in year five.”
Laforge sees gold heading back to its December lows since a commodity will “go back and test its lows off of the first move down multiple times.”
Gold is up about $300 this year after hitting a low of $1,050 in December.
LaForge said this year’s run up was overdue considering the gold’s three year slide.
“I am a big believer in reverting to the mean and we definitely needed a bounce off of $1,000,” says LaForge. “I would say it is going to be tough from here.”
LaForge has made bearish statements about gold in the past. In 2014 he saw $660 per ounce gold as “in the cards.”
Creative Commons image of bear by Daniel Hartmann.
3 Comments
Anymouse
dateline on that CNBC story is 6 July 2016
Bob
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What a steaming pile. These disingenuous banker boobs just don’t give up. They are gonna ride their false narrative right into the dirt.
QUESTION:
If you can’t trust wells fartgo’s “ethics,” who on wall street can you trust?
ANSWER:
Nobody. The traitors are crooked as a dog’s hind leg.
SHAME on Mining.com for giving these organized criminals the platform to enable their continued malfeasance.
Consider committing an act of journalism. Expose the bastards. There is more honor in being the FIRST to report the crimes than the LAST.
Lou Emnatty
Gold is grinding the 1-, 2-, 8-, and 10-year moving average now.