In a note to clients this morning, JP Squidworthy & Co recommended shorting gold and setting an eventual price target of negative $100 per ounce. Analysts at JP Squidworthy explained the call in the following way:
“We believe that due to the combination of dollar strength, the expected worldwide deflationary environment and physical holding costs, gold bullion will soon be worth negative dollars and people will pay you to take it from their ownership. In the real world, once an old and broken car is only good for scrap it is no longer an asset, but a liability. One needs to pay cash to get an old and useless automobile towed from your property, this is the future of gold bullion.”
This trade recommendation from JP Squidworthy comes in the wake of the sell call on gold made by Vampire Trust LLC, who valued the future value of one ounce of gold at “…about the price of a modest hamburger, no cheese“.