You're watching...
ETF Securities Managing Director Will Rhind on why it is a great time for investors to add gold to their portfolio.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
The debt crisis pushes investors -- the sidelines we have someone who says.
It's time to go back to buying -- joining us now is will -- he's ETF securities managing director will be -- this is a way to play a crisis.
You don't tell us what's behind your theory the people should be purchasing gold is and let's just be clear is that the physical gold or through.
ETFs.
So it's kind of a combination of both the -- the ETFs thirty TFs are backed by physical gold so as tantamount to the same thing.
And just be clear you know what we're saying is that some we've imposed upon gold for for number of years now.
But it just struck us of the sentiment that's review we for the most of this year which is so negative on gold we -- yourself by the way.
Wolf at least we -- lying I mean you were you the last time you were here were not as bullish on buying.
What we -- we see more I -- action platinum palladium and suddenly.
What we sold more positive sentiment towards those metals as we seemed.
And to be in the semblance of a real recovery particularly here in the US.
But this sentiments goes up because you thought interest rates were rising there for gold would have been a -- a bad bad at that point.
No we we we sold the fundamentals for platinum play can be post of the so bad that particular vehicle sales numbers.
And to backs of business cycle numbers which -- correlate well with platinum palladium.
But I think the debate change in -- come the last few weeks we've seen them investors really stop to come back into gold in a way that we haven't seen for quite some time.
-- up because you believe that that central banks all around the world.
The better bet is that they will continue to print money for lack of a better just term of of what they're doing to add liquidity into the markets to prop up certain economies.
And that because of that.
A currency gets devalued and gold becomes more valuable.
Yet this on the one -- of that -- I would add to that that typically the central banks -- -- printing money -- those with.
Deficit problems -- that debt problems.
The central banks on the other side they're actually buying gold of those that have.
Current account and current -- -- So we've seen buying from Mexico from the Philippines Russia from.
Various countries -- -- holding typically large amounts of foreign currency reserves of some positive looking to.
Diversify some of -- into you assets such as gold let's talk about the specific trade because a lot of people see GOP and every UC SGO.
Well this is Swiss gold why does this particular play appealed to you.
Well it's just a little -- different from perhaps some of the other options its side ETF that defaults -- -- stores gold.
In Switzerland.
Of course worth reminding everybody that's what's -- not -- of the use so we think about.
Storing gold in Europe it's not.
-- solve the debacle that we see every day involving the Euro zone countries -- happen Europe.
So everything we see what's -- being neutral places a safe place.
This is this is actually by the way of physical picture of what SGO well has in his vaults.
-- secretive away somewhere ahead exactly so it is just gold in Zurich and very crucially and simply.
And allows investors to track -- spot price of gold.
What do you say one a guy like Warren Buffett or his vice chairman Charlie Munger arguably among the best investors of our times says.
Gold is just -- best investment I mean they'd rather have equities it rather have something -- does something that create something.
That people would buy them from -- that they really don't see people like you see what do you say that that.
What -- -- makes a market let me -- on everybody.
Has the same view on anything and by definition for every by others that there's a seller and done.
You know it's no secret -- -- Warren -- and so over one point in his career where should know if you can and so why does that necessarily that much different from mining gold probably because he'd say it goes into it equipment and it certainly got an industrial -- to it.
Yep -- perhaps.
-- we we see gold as being a different.
Asset altogether -- full of currency and -- something that really comes into -- and in times like these.
Quickly what about silver.
You like silver's -- -- now.
Well a lot of people view silver as a leverage play -- gold.
-- wished prophecy typically means that when we see environment -- price of rising civil prices.
Rise sponsor and up to this year.
-- civil prices have outperformed gold and that may continue we'll Ryan great to see again well thanks very much director of ETF secure.
