News
Blanchard in the News
The following articles provide Blanchard and Company, Inc. experts’ opinions on issues affecting gold investors and the gold market.
Keeping 5% of portfolio in gold isn’t a bad idea as a hedge
March 8, 2010
You hear many people pushing gold these days, citing our nation’s $12.4 trillion debt. Gold is the classic hedge against inflation. If the U.S. resorts to printing money to repay our debts, the value of paper dollars will fall, and gold prices will skyrocket.
Coins also don’t have to be tested for weight and gold content, as gold bars sometimes do. “With a 100-ounce bar, there’s a greater chance someone has shaved a few ounces off it,” says David Beahm of Blanchard & Co., a New Orleans gold dealer.
The Buzz: Gold and oil down, but not out?
February 8, 2010
So will this trend continue? David Beahm, vice president of economic research with Blanchard & Co., a New Orleans-based investing firm that specializes in gold and other precious metals, said one reason gold and oil prices are falling now is simply because there was too much enthusiasm at the end of 2009.
The price of gold for example, shot up from about $1,050 an ounce to its peak of more than $1,215 an ounce in only two months. “This is a healthy pullback from the highs. Some investors thought gold went up too much and too many people were getting in the market,” Beahm said. The fact that several European economies are such a fiscal mess right now may also keep gold, oil and other commodities–such as silver and copper–in check for a bit. That’s because the dollar has once again regained its status as being one of the world’s safer investments. “People are going to wait and figure out what’s going to happen with Europe’s financial disarray. Right now, it appears investors think the smartest and safest play is the dollar,” Beahm said.
Gold gives up some session gains after FOMC statement
December 16, 2009
Gold futures finished higher but were volatile in electronic trading Wednesday, briefly relinquishing some of the regular session’s 1.2% advance after the Federal Reserve reiterated a commitment to low rates but nailed down the end dates of its special liquidity programs.
“The dollar rallied after the announcement due to the Fed’s accompanying statement,” said David Beahm, vice president of economic research at Blanchard and Co. in New Orleans, in emailed comments. “While the Fed continues to support interests near zero percent for some time, it may be ending the additional quantitative easing that the Fed has needed to support the economy.”
However, Beahm believes that with the economy still weak, the Fed will keep interest rates near zero for a long time, ensuring ample liquidity and lifting inflation expectations. In this context, Blanchard maintains a price target of $1,500 for gold in 2010.
