Peter Hambro’s ousting from the gold company he helped found hasn’t exactly curbed his bullish sentiments on bullion.
Hambro, who rose to prominence by taking a counter-cyclical bet to found Russian gold powerhouse Petropavlosk, told CNBC that he thought gold was “way too cheap” despite the metal not bouncing through the $US1350 an ounce ($A1960) mark since the midway point of 2013.
“I think it’s going up — the level of world tension is so great, particularly in the middle east…anybody who doesn’t have at least five percent of their wealth in physical gold right now is missing out on the greatest wealth insurance that exists.”
He was voted off the board of the company in 2017 following a drawn-out battle with shareholders over corporate governance — but eventually found his way back to subsidiary IRC Limited, which mainly has iron ore operations.
However, the bitter taste in his mouth over the Petropavlovsk affair hasn’t left him any less of a gold bull — saying there’s no reason he can see that gold can’t break through its current resistance level and onto great heights.
“Don’t forget that we saw gold at $1932 in 2014/15, so yes — of course it has potential to go up. I think it’s way too cheap at the moment and I think there is a desire amongst the people who like to see stability in markets to see the rise slowly,” Hambro said.
While Hambro is a noted gold bull, geopolitical events have conspired in recent times to support the gold price — the latest of which is the sinking of two tankers in the Strait of Hormuz.
This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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