Peter Boockvar, CIO of Bleakley Advisory Group, is looking to take advantage of the technical breakout in gold. He explains the impact of a dovish Fed, notes the relationship between the metal and negative-yielding debt, and reveals just how high he sees prices going, in this interview with Justine Underhill. Filmed on June 28, 2019.
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Gold: Breakout or Fake-Out? (w/ Peter Boockvar)
For the full transcript visit: https://rvtv.io/2NwPHFV
is very similar to how people look at gold. And it's back to an asset with limited supply, negative yielding
interest rates, central banks are better out of their minds, that are losing control and not helping the
economy. And let's have an area of safety, let's have a form of value.
So I think Bitcoin and gold really are now being defined in very similar ways. Whereas Bitcoin maybe was
going to be a transactional coin, and you're going to buy some pizza with it. Well, I don't think that's the
case. And the same thing with gold, it's a store of value. And I think people are now grouping them together.
So well, I have no opinion on where the price of Bitcoin ends up. I still pay attention to it in terms of the
messaging that it gives to markets, because I think that the messaging that it is giving is very similar to what
gold is saying. And that they're now speaking the same language
JUSTINE UNDERHILL: So then in terms of gold, are you also looking at technicals as well?
PETER BOOCKVAR: So the $1375 level, I believe, we talked about this channel, and breaking out from
this downtrend, I think, was really that key level. And now that we've gotten above that, now, $1400 is
becoming this sticky level. I know it's a round number and you're just picking it out of thin air. But when
you're talking about an asset like this, you trend toward to round numbers. But I believe that you look at a
chart, going back to 2012-2013, this is really a massive, multiyear bottom that we've created here, this
reverse head and shoulders that I believe has real potential of going back to those 2011 highs.
And it's not just the technical, it's a combination of the fundamentals and technicals that are really coming
together in why I think this time is different, in terms of not being a fake-out with previous rises in gold
where, again, and I'm guilty of this as well as others that this is it, this is it, because I really be this is going
to be it. And one other thing I want to distinguish, this potential easing cycle ahead for the Fed, versus the
last infinity-type easing cycle in 2013, we had QE3 infinity QE is that we entered that year and the gold
bulls, such as myself, after being global gold bulls since 2000, was, okay, this is what's going to finally get
us to this parabolic, epic move above $2000, $2500, wherever, and ended up failing in $1900. And the
exact opposite happened.
Gold totally broke down while the Fed was printing a trillion dollars in 2013. And that is because the market
said you know what, the economy is good, the Fed is helping, let's rely on the Fed and everything is- the
macro situation is fine, why own gold, I don't care what the Fed's doing. Now, we're entering a different
form of an easing cycle. But the fundamentals around the world are deteriorating, the dollar is softening.
You have all these negative yielding securities which didn't exist in 2013 really, you had only- I think it was
maybe Sweden or Denmark that started down that road. So that's what separates this time versus that time.
JUSTINE UNDERHILL: So could you review the levels that you're looking at for gold as well as the stop
loss that you would have?