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Video: Wells Fargo LaForge Explains Bullish Gold Forecast

Wells Fargo Gold
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EDITOR NOTE: This Stansberry Research interview with Wells Fargo asset strategist John LaForge presents us (if anything) with a lesson in corporate messaging. The focus of the interview concerns the reasons why Wells Fargo lowered its gold target from $2,400 to $2,100 in such a short amount of time with no real fundamental trigger. The answer, LaForge clearly says, has to do with an internal issue--namely, Wells Fargo’s Fixed-Income Division. He tries to spin a narrative supporting the department’s target revision. But if you read between the lines, the motivation behind the revision is less a reflection on economic forces than it is a result of internal disputes concerning capital inflows and revenue. Simply put, Wells Fargo makes more revenue by keeping funds under management. And this takes priority over customers’ best interests. Gold and silver don’t need management (non-CUSIP gold and silver, especially, has no need for any bank services or assistance). So, the next time you come across precious metals forecasts issued by banks or institutions managing money, bear in mind that although their “story” claims to be centered on the economy, often their motivations may be centered on internal matters, all focused on profits over the people they serve.

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Originally posted on Stansberry Research

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