Cazenove's Robbin Griffiths: Major Investors And Sovereigns Are Just Starting Their Move Into Gold

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Cazenove Capital — widely assumed to be a broker to the British royal family — remains bearish on U.S. stocks and bullish on gold.

In an interview at King World News, Robbin Griffiths points out a key reason to buy gold, which is that most big investors haven’t entered the market yet. That means there’s potential for a exponential surge:

“I think we almost certainly will.  At the moment it is not true that gold is an over-crowded trade, absolutely nowhere near true.  I’m right in the midst of private wealth management here I know who’s got it and who hasn’t and it’s not an overcrowded trade, even amongst the hedge funds.  Most people have heard of Mr. Paulson, and he’s got a lot of gold, but most of the others (hedge funds) have not done so.”

Hedge funds could add liquidity. So could sovereigns:

Furthermore in countries, we’re well aware in India and China, they regard themselves as owning too much of their reserves in dollars.  They are trying to diversify away, but there are reasons not to put any more money into the yen or the euro at the moment.  What else can they do?  They’re building up real assets, and as a reserve asset gold fits very well. They could multiply the proportion of their reserves that are in gold by hundreds of per cent, and still not be deemed to have gone too far.

Read the rest of the interview here.

Now check out our complete guide to how hedge funds are trading gold right now >

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