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-- from one commodity to the next we're gonna got a gold gold is up about 8% this year as to its terrorist group.
To new highs but to -- office -- in his last shareholder letter to steer clear.
So is it time to jump on the bandwagon or abandon the golden ship joining me now on a Fox Business exclusive -- why the former director.
I'm the US -- and then you make about those comments from mr.
Buffett -- that Dick at a cringe when he parents say something like stay away from gold.
Well in -- you know there's a lot of interest in gold because of the political and economic uncertainty that's out there handles macro economic factors.
I haven't changed so I'm still very bullish that gold has some way up yet.
I can't why do you say that -- because you know again it's it's become one of those IEA you've heard this it's the fear trade we -- hear that kind of -- but what do you think -- been the biggest factor.
Overall for the last gosh three years now that is driven gold to fresh new Hynes.
Yeah well gold prices are just a function of supply and demand -- the supply is relatively limited.
And all the mines that are producing aren't adding a whole lot more -- that supply but yet demand is dramatically increasing.
Not only our central banks taking a major position and it.
But even individual investors in Indian and China.
The -- six also of gold growth in owning physical gold in most countries.
-- all the gold in the world amounts to nine point six trillion dollars and it again.
And weighs as much as the Eiffel Tower -- based on what will be your your time at the at the -- some kind of curious -- -- time there.
Are you surprised that the interest that we've seen in golden mean seven years ago my grandmother what -- -- I'm gonna hold on a buy gold bracelet it's gonna keep me safe in case I need -- but.
We don't really have that -- -- economic environment in 2000.
And well whenever there's uncertainty.
And there's no sure bets the Smart strategy -- to diversify.
And most diversification plays.
Which means that people are really value gold because gold especially physical gold is something that -- always retain it's value.
But even more on gold generally moves separately.
From the government policies that influence stocks and bonds and other electronic investments.
But at what what if Ed though we do get a global economic recovery.
And we we keep hearing we're gonna go out one little -- gets really you know materialize -- but what.
Happens at that point it would need help -- -- -- but to scale back our gold positions a little bit because you're pretty bullish on.
Yeah well -- -- Cheryl -- what you brought is a very good point -- -- people see a global economic recovery coming tomorrow.
I yeah -- I would rethink my position in gold but here's a question that you need to ask.
Is Europe going to come up with a permanent solution.
To their debt problems.
Is it's are going to be peace in the Middle East that's gonna stabilize oil prices and will congress and the president put aside their partisan differences.
To come up with a budget that instead of by creating massive deficits.
Well -- end up creating surpluses and paid on the national debt.
I -- almost things come true.
But a whole this not a good.
Investment strategy in my diversification as.
-- protectionist understand that part of it at liberty and Hank Smith is the chief investment officer have a Fergie has.
A very different take on gold you told me the top of the show stay away from gold you don't like it at all.
Well look let's just put gold its proper category it's not an investment it is a speculation as all pure commodities.
Because there is no inherent rate of return there's no earnings there are no dividends you're totally dependent on the next buyer.
Buying it from you at a higher price in order to make money.
That by definition -- speculative.
And not an investment and yet it's being sold as a safe asset from which we would disagree with the.
Ed Ed -- that.
Yep well you know the key here is don't put all your eggs in one basket.
And as you diversify.
Most investments are either up Paper or electronic.
Just make sense to have a bit of your portfolio in physical gold.
But what it what is the breakdown I mean is it 5% of my portfolio is -- 10% 20% when it -- -- really good question Cheryl and I think it depends on what your investment goals are if you're -- like me and -- nearing retirement.
You want to retain as much net worth is as you possibly can.
For younger and able to take more risk -- you might that go into the idea leave.
Speculate on the daily fluctuations I'm not that Smart I buy gold for the long term.
-- -- But I can't really -- the end of eleven that same question percentage -- they had in the portfolio where would you put it 5% 3% what.
Well -- put it very low almost at 0% again because I'm looking for investments they give it.
Returns like interest or dividends.
And how safe is gold if it starts going down in price and that's the majority of your holdings and it's giving you know return for -- care.
Well I well.
Very -- perspectives from both the -- Ed -- the former US mint director and current senior executive at Morgan gold thank you very much of course -- the back -- --
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