Tags: Zina Spezakis | gold | long-term | buy

MA Capital's Spezakis to Moneynews: Gold is a Long-Term Buy

Wednesday, 01 May 2013 07:36 AM

Zina Spezakis, a partner and chief marketing officer at MA Capital Management, wants gold investors to realize that while the precious metal is a long-term buy, 2013 will not produce desired results.

“We actually expect it to be a little bit weak this year,” Spezakis told Newsmax TV in an exclusive interview. “Longer term, it’s a buy and then it becomes a matter of … can you stand the dips?”

Bullion gained 11 percent since falling to a two-year low on April 16, according to Bloomberg News.

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“If you look at what’s happened in the last few weeks, we actually took our clients out of gold last month because we … saw the warning signals in the market, according to our models,” she said.

“But what’s happened is a lot of these hedge funds have pulled money out of various ETFs. There was a little pop in the price last week. A lot of that came from actual bullion buying amongst several Asian countries.”

Editor's Note: Get David Skarica's Gold Stock Adviser — Click Here Now!

She also doubted that the Federal Reserve would alter its easing policy after the government’s release of GDP data on April 26.

“There’s no reason why the Fed should … change its policy of buying $85 billion every month,” she said.

“Chairman [Ben Bernanke] did … say some time ago that he’s planning on keeping rates where they are … over the next year or so," she said.

"If there is still perceived weakness, as far as the Fed sees it in the economy, the stimulus is going to be with us. Longer term, all of this money printing is going to cause inflation. We just don’t think it’s going to happen over the short term, meaning the next year or so.”

Spezakis also commented specifically on the GDP data itself, providing context for the actual rate of economic growth of 2.5 percent and comparing it with expectations for 3 percent.

“That number was about 1.5 because a large part of that acceleration was due to farmers increasing their inventory in silos because of the draught last year,” she said.

“I don’t think this is going to be so impactful, only because since the crisis many other economic reports have affected the markets almost as equally as the GDP numbers," she said.

"The one good thing about the GDP number … is that it showed that consumers picked up their pace at about 3.2 percent. But unfortunately their incomes dropped a little bit, so they had to dig into their savings, which longer term is probably not too good for the GDP.”

Editor's Note: Get David Skarica's Gold Stock Adviser — Click Here Now!

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Zina Spezakis, a partner and chief marketing officer at MA Capital Management, wants gold investors to realize that while the precious metal is a long-term buy, 2013 will not produce desired results.
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Wednesday, 01 May 2013 07:36 AM
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