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Is Now a Great Time to Invest in Gold?

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  • Description

    Midas Chairman of Investment Committee Tom Winmill on the outlook for gold prices.

  • Duration 4:02
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Global demand for gold fell 7% in the second quarter from a year earlier that's according to the World Gold Council today.

But our guest says it now's actually the best time to buy gold.

Interesting Tom windmill is chairman of the investment committee have my it -- so our -- -- -- we know that global demand is -- gold has been really just kind of while just kind of hanging out hasn't really moved from one direction -- with any.

You know commitment why do you like gold at this point.

Well you wanna buy gold when it's down and -- so and it's up and we think right now it's it's down it's down from 19100 dollar levels last September.

And it hasn't gone anywhere it's it's pretty you've been following the the Euro.

Down in the dollar down interestingly other currencies against the Euro and the dollar up 8% look at the Australian dollar Canadian dollar the Japanese yen all these other.

Ways to get out of a US dollar exposure have done quite well and gold has -- we think it's -- -- perform.

In that alternative currency role.

But -- -- we've also seen the popularity of the GLD of the largest gold ETF and in fact just yesterday we heard that John Paulson and George Soros.

Are accumulating more gold positions Paulson has a 44%.

Stake -- company.

It added equity position is in GLD do you recommend that play.

I recommend that investors look at their own financial requirements before they follow someone like policy news doing things for his own reasons but.

Also look at some of the central banks around the world are also piling into gold -- -- diversify out of dollar assets we've seen.

Russia day -- -- that Ukraine Philippines and recently South Korea has announced it's going to acquire a sixteen tons of gold so.

Not only Paulson but other financially savvy players around the world are looking to for a -- problems -- Paulson is.

Trying to get out of someone else's liability and the sovereign world we see what happened to that those sovereign nations and in -- In the European zone and now I think there's some worry about what's gonna have with the US in the fourth quarter.

But Tanya you talk about global buyers of gold India and China are significant very pronounced buys a golden the demand -- those -- countries.

Has really slipped off doesn't that bring you concerned.

This -- their experiences and so a lot of concern in 2000 since 2005.

Fabrication demand.

From India's done about 45% gone from 75% to 45% of a total in demand but let's remember that's for fabrication jewelry for weddings so -- The rupee has touched an all time low against the dollar judicious about -- much buying power for the every -- person in India to buy gold and interest we -- China.

Is actually increasing its ownership of gold steadily it has to over two trillion dollars of -- X reserves diversify.

51 billion dollars -- goal total was bought in the second quarter so it.

China has to go a long way to diversify out of -- the US dollar assets as -- does dependent -- and central banks throughout.

Yeah your cash flows the jewelry buyers in India.

You've made your case for higher gold prices we're gonna hold did you where prices going there at 1616.

An -- of that.

All right while the former two are appear you're looking -- of information next next course.

Yeah where do you see gold prices going.

Well we think we'll -- -- around 19100 by year end of course that's the fiscal -- there's been a lot of discussion about quantitative easing in the United States in the third quarter I doubt it it's just.

Circumstances aren't that bad but after we have the the sequester the disappearance of the tax cuts and and they the that impasse would seem -- for these kind of political impasse is people get worried about the political process the United States gold has done very -- circumstances let's look at the third quarter 2011.

And we think it's going to.

Spike dramatically in the fourth quarter that's the time before that period -- -- investors should consider position gold working gold mining equities.

I see say by now and it's going to in 19100 dollars an -- thank you -- -- might -- chairman of the investment.

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