DB: Gold is 20% Too High. Gold: DB still around?

Gold

Gold is OverValued Warns DB. Compared to what, we ask?

Does no-one check these people on their B.S.?

While many people are pointing their fingers at the MSM for its unreliability in exposing the truth, most have completely ignored the utter mediocrity at Financial firms in predicting market behavior. We think it is incredible that a firm that doesn't know (or is lying) about its own situation even has the temerity to have an opinion on anything. Really. Who is pointing out the complete failure of these firms to make reasonable statements or at least make caveats to their predictions. Oh wait... that is the MSM job. Oh well, advertisers pay the bills.

Reality: Gold could drop 20%. That is well within its annual volatility range. Deutsche Bank is down 41% YTD, not so much.

More importantly: DB is one of biggest reasons to own gold

Written by Dinsadale Piranha

Submitted by Soren K.

Gold Prices Are 20% Above Fair Value, Warns Deutsche

The rally in gold has been closely tied to the tightening in U.S. election polls (see chart below) and gold prices are now 20% above their fair value, warns Deutsche Bank.

Gold prices closely track the tightening of U.S.election-Deutsche Bank

But it seems Hillary Clinton is widening her lead again, just two days ahead of the election. In a four-way race, she has 46.3% of the votes, a 7.3 percentage lead over Donald Trump‘s 39%, according to RealClearPolitics. Gold prices fell 0.9% in Asia hours on Monday morning to $1,292.85 an oz. Fair value aside, gold faces quite a few headwinds, especially in positioning. Full Article here

What Gives DB the credibility to make this statement? Lets take a look. Note the Dates:

Deutsche Bank Denies That It Is About To Collapse

February 9th, 2016
Deutsche Bank co-CEO John Cryan moved to quell fears about the bank’s stability Tuesday with a surprise memo saying its balance sheet “remains absolutely rock-solid.”
The comments come as investors grow increasingly nervous about the health of European banks, which have taken a hit on the fall in energy prices and which face rising concerns over their cash levels.

Of course Lehman Brothers issued the same kind of denials just before they collapsed in 2008. Cryan’s comments did little to calm the markets, and even Jim Cramer saw right through them…

“You know, Deutsche Bank puts out a note saying, ‘listen, don’t worry, all good.’ Reminds me of JPMorgan saying if you have to say that you’re creditworthy then it’s already too late.” Full Article here

And lets take a look at DB stock price since this article was published