Market Overview

Sterne Agee Bullish On Gold And Silver

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Analysts at Sterne Agee believe that global economic conditions will continue to provide support for gold and silver prices in the near future. According to a recent report, global deflation and growth fears will continue to drive investors to gold and silver.

Uncertainty In Greece

Gold and silver are the preferred safe haven for many investors that are worried about Greece exiting the Eurozone. Fears of such an exit and its ramifications have driven the euro to its lowest level against the dollar since 2006.

More Global Stimulus?

For the first time since the financial crisis in 2009, Europe is experiencing deflation. These circumstances have led many investors to the conclusion that monetary easing by the European Central Bank could be coming soon. An announcement of another round of stimulus could come as soon as the ECB’s January 22 monetary policy meeting. Fears of the euro devaluation that could result from attempts to stave off inflation continue to drive demand for gold and silver.

Prolonged Zero interest Interest Rate Policy

Analysts predict that U.S. interest rate hikes could come later that many expect. U.S. inflation levels remain well below the Federal Reserve’s target levels, and declining oil prices, a stronger dollar and slowing economic growth are all reasonable justifications to delay an interest rate hike. Sterne Agee Chief Economist Lindsey Piegza believes that interest rate hikes might not come until 2016.

Stock Picks

Sterne Agee rates the following gold and silver stocks as Buys: Agnico Eagle Mines Ltd (NYSE: AEM), Coeur Mining Inc (NYSE: CDE), Gold Resource Corporation (NYSE: GORO) and Newmont Mining Corp (NYSE: NEM).

Latest Ratings for AEM

DateFirmActionFromTo
Oct 2020BMO CapitalMaintainsOutperform
Oct 2020BarclaysDowngradesOverweightEqual-Weight
Jul 2020ScotiaBankUpgradesSector PerformSector Outperform

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