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Goldman Sachs and Gold

Chart 1: The quote of Goldman Sachsâ?? shares listed on NYSE from 2008 to 2018.

Goldman Sachs Collapse and Gold

How possible is that Goldman Sachs collapses? It’s a difficult question, since bank’s activities are vague and blurry. Let’s look at the chart below.

Chart 1: The quote of Goldman Sachs’ shares listed on NYSE from 2008 to 2018.

The quote of Goldman Sachs’ shares listed on NYSE from 2008 to 2018

As you can see, the shares of Goldman Sachs significantly rebounded from levels seen during the Lehman Brothers’ debacle. They are up almost 200 percent from the low in 2008 and down about 90 percent from the all-time high in 2007. And the bank’s price to book value is 1.2, which seems to be healthy. Well, compared to the Deutsche Bank, Goldman Sachs looks excellent and is not likely to fall in the near future. American banks generally coped with the Great Recession better than their European peers. Trump’s deregulation of the financial sector will only help American banks, including the Goldman Sachs.

Hence, Goldman Sachs is a rather poor candidate for the next Lehman Brothers. Its fundamentals do not look scary, and it is unlikely that the U.S. government, where so many formed Goldman Sachs’ employees work, would allow for its bankruptcy. We believe that gold bulls should not count on that. However, investors should take all such predictions with a pinch of salt, as the future is uncertain. The same applies to Goldman Sachs’s forecasts – as a reminder, in 2008, when investors should have been buying gold as crazy, the bank predicted gold prices would fall…

We encourage you to learn more about the gold market – not only about the link between Goldman Sachs and the yellow metal, but also how to successfully use gold as an investment and how to profitably trade it. Great way to start is to sign up for our Gold & Silver Trading Alerts. If you’re not ready to subscribe yet and are not on our gold mailing list yet, we urge you to sign up. It’s free and if you don’t like it, you can easily unsubscribe. Sign me up!

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