Gold Price Going Higher, Goldman Sachs Drop Not Done
New York (Jun 27) The SPDR Gold Shares ETF ( GLD) popped five percent on the Brexit vote, lifting the yellow metal's return to 24% for the year. Michael Parness, CEO of Trendtrade.com, said investors should stick with the precious metal as long as central banks continue to print money. 'Governments are debasing their currencies around the world and there is virtually no chance that the Federal Reserve raises rates this year or even next,' said Parness. 'I believe there is a better chance we go to negative interest rates and in that environment you definitely want to own some gold.' The iShares Silver Trust ( SLV) only rose 2.5 percent in the wake of Great Britain's decision to leave the Eurozone, yet the industrial metal is up 28 percent year-to-date. Parness said he is betting silver will keep its upward trajectory in coming weeks as well, topping $25 an ounce in the next year. 'Do you want to own the U.S. dollar or the pound sterling? No, you want to own gold and silver,' said Parness.