Was it prudence or capitulation that led Germany's largest, and invariably most insolvent financial institution Deutsche Bank to tell their investors on Feb. 26 to buy gold? But either way this recommendation could not have come at a better time. This is because two days ago gold hit what it known as a 'Golden Cross' on technical charts, meaning the trend for prices is upwards and headed towards a strong bull market.
And perhaps most importantly, Deutsche Bank stands on the precipice of not only becoming bankrupt themselves, but they have the potential to take down many major banks in Europe and the United States due to their $70 trillion in derivative exposure.
Buy gold as “insurance is warranted” Deutsche Bank have advised in a note issued today.
The embattled German bank has said that rising economic risks and market turmoil mean investors should buy gold for insurance.Since the beginning of the year gold is by far the market's best performing asset, and in a recent look at historic trends is the best start for a year since 1980 when it completed a massive bull run from $35 per ounce to $850 an ounce over the course of a decade.