Citigroup Says Haven Role `Back in Vogue'

“We have a lot of fear today that’s gathering steam,” James Cordier,
the founder of Optionsellers.com in Tampa, Florida, said in a
telephone interview. “We definitely have some diversifying going on
out of stocks and into fear trades, which is gold today. With the
combination of a lack of inflation in the U.S. and the turmoil in the
stock markets, there’s no other way to look at the Fed right now other
than they’re on hold.”

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The Union Bank of Switzerland (UBS) warned investors that the
seven-year cycle in equities is rolling over. So, UBS recommends
buying gold, as its price is likely to bottom in 2016.

“Gold has been trading in a cyclical bear market since 2011. In 2016,
we expect gold and gold mines moving into an eight-year cycle bottom
as the basis for the next multi-year bull market. Initially, we see
gold profiting as a safe haven and as of 2017, gold could profit from
the US dollar moving in a major top and starting a bear market. A
potential bottom in 2016 bottom could be a rather powerful bottom,
since together with a four-year cycle low we have also an eight-year
cycle low projection for this year. In this context we expect a
potential 2016 low in gold to be the basis of a new multi-year bull
market.”