Banks, Oil Falling? Buy Gold!
Precious metals are about to jump. So says Peter McGuire, managing director at Commodity Warrants Australia. He offered his commodities insights to CNBC.
McGuire addressed the "perfect storm" confluence of forces in the markets Monday.
He touched on the implosion of Lehman Bros. and Merrill Lynch -- and paradoxical buying of the U.S. dollar as global economies (ex-U.S.) slow.
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"You don't get this often, you don't get this often even in a lifetime," said McGuire.
He pointed to failure of crude oil prices to rise, even given Hurricane Ike and strife surrounding Georgia and Russia, Nigeria, Venezuela, Iraq and Iran.
"We're over halfway through the hurricane season now... and geopolitical, there's not a lot of concern there," he concluded.
Combining oil's downward omen for energy and construction commodities with the above-mentioned events in financials and currencies leads him to one conclusion:
"I think we'll see a return to precious metals. I wouldn't be surprised to see those markets [gold, silver, platinum] a little bit stronger."
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