With gold at record highs, what’s driving the price and is there more to go? IGTV caught up with John Meyer from SP Angel who discusses the concerns that the Chinese authorities have about their economy. This suggests that there is yet more upside to come as the Chinese state is buying gold to avoid reliance on the US dollar.
Russia is also a big buyer of gold, but Meyer agrees that this is a bit of a sideshow compared to the Chinese position. The discussion also covered the point that investors in gold companies are making with the relative underperformance of gold producers, John Meyer says that this gap will close when investors are happy that the rise in gold is here to stay. The conversation also looked at the price of copper, another China story according to Meyer who says that the Chinese state holds a similar view on copper that it does on gold, as a safe haven bet on the future.
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