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Gold and money markets expert Islam Memiş made remarkable statements from his social media account.
Claiming that the world economy was caught unprepared for the coronavirus, Memiş pointed out the pitfalls in the financial markets and said: “The measures and measures taken by governments and central banks aim to protect against short-term recession risks in global economies. As governments are rolling out new measures in succession, central banks will continue to cut interest rates. “We note that data for all developed and developing countries remains poor. In other words, Kovid-19 continues to negatively affect world economies and the financial system. “
Last week, an agreement on the oil price war between Saudi Arabia and Russia, the American Central Bank (Fed) took a new loan of $ 3.2 trillion, the Fed’s cash support to markets reached $ 8 trillion, global risk appetite increased. Claiming that it caused the recovery, Memiş said: “Last week, we saw a rapid recovery in the stock markets, depreciation in dollars and increases in commodity prices. The BIST 100 index in domestic markets increased above the level from 97 thousand points, and the dollar / TL exchange rate decreased to 6.62 lira. We observe that gold prices have remained strong, the price of an ounce of gold increased to $ 1,690, the price of a gram of gold increased to 365 pounds, but I think increases in gold prices are limited and unhealthy. Quarries, refineries and retail jewelers are closed, while factories are closed all over the world, people are unemployed and closed to their homes. In the United States, 6 million 600 thousand people applied for unemployment benefits. There are 10 million unemployed. It is impossible not to see that unemployment will increase even more worldwide. “
Collect physical gold
Stressing that in that environment, stock market investors had to convert their physical products into cash to complete the collateral, Memiş said: “On the other hand, everyone around the world has to sell the gold that they have accumulated to buy and survive. So I don’t think I have a demand for gold in the world. 90 percent of the market and retail jewelry stores, including the Grand Bazaar, in Turkey, I would like to mention is still closed. During the last 2 weeks, we witnessed that citizens did not demand gold, on the contrary, they exchanged gold intensively. How gold has accumulated in exchange for Turkish gold investors, including the bad days and we saw them cover TL costs again. While system builders first collected gold from stock market investors, they now began collecting physical gold from the world. Very soon, it will wait for central banks to sell the gold they have in stock. “He said.
UNITED STATES CLOSE CHEAP OIL
By looking at the gold stock in the US USA, Memiş said: “We saw this process in sharp declines in oil prices. In oil price wars between Saudi Arabia and Russia, the price of a barrel of Brend Oil decreased to $ 20 a barrel, oil stocks prices rose by 15.2 million barrels last week … After the US closes its oil stocks at a low price, news comes of Saudi Arabia and Russia deal, and Brend Petrol increases to $ 36. I think this is not a tawah The country that stores the most gold in the world is the United States with 8,133 tons.
And why the builders of systems or of EE. The US, which binds the ounce to the dollar, collects gold at a high price while condemning the world to exchange gold? We saw that they attributed the increases in gold prices to the following reasons; The flight bans caused disruptions in physical gold transfers between countries. Important refineries are closed in the world. People cannot achieve physical gold.
But wouldn’t this technical problem be solved with a new special fix? However, we have seen that countries around the world have raised aid planes between them and have made flights to bring their citizens to the country. If governments saw such a demand, the necessary legal arrangements would be made. If there were such an increase in demand, the price of an ounce of gold would break above the $ 1,680 to $ 2,000 level. It will happen too, but it’s early for now. Because those who collect 50 percent of the gold in the world do not start this process unless they collect the remaining 50 percent.
If we put it together, we can see strong sales in the gold markets once again. The price of an ounce of gold can drop to $ 1,550-1,450, the price of a gram of gold can drop to 340-320 pounds. I suppose this sharp decline may occur in April. If delayed, it may yield until May. Without the harsh correction I envision, I will continue to see increases in gold prices as unhealthy and a trap. Attention to game addiction in virtual environments! While people around the world are trapped in their homes, those who keep their savings in bank deposits try to make money buying and selling. Some are in this environment for dependency, some for profit and some dependency. Those who do not have enough savings to buy and sell continue to play with the support of the leverage system in the forex environment. ‘ He said
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