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Minerd Makes Case for $10K Gold

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  • Description

    Guggenheim Partners CIO Scott Minerd gives his outlook for gold prices and Treasuries.

  • Duration 3:50
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-- thank you so gold.

Could -- to 101000 dollars an -- because all the -- being poured into the -- -- but not just our Federal Reserve but central banks around the world.

What does Scott miners have to say about this chief investment officer of the economic partner Scott so good thing -- -- -- to the last time your hair.

Apologies for that Scott do you think -- goal could really go to 1010.

Grand announced.

Either scenario where I think gold is over 101000 dollars an ounce.

And I don't think it's that crazy -- if you start to look at things like the ratio of the money supply to gold.

Historically that ratio has been between.

About 25%.

-- the total value of the Fed's holdings of gold has been between 25%.

Of total money supply vs a 120%.

Work currently sitting around twenty to -- 5%.

Which means gold could quote easily go up by five times from where we're sitting today.

And those numbers don't include the money that's coming in in the new round of quantitative easing which could take -- even higher.

Does that -- a logic applied to.

All assets like gold and wide goal verses.

A copper if -- well even a home at this point and -- again you know the great thing about if you're talking about inflation and you borrow money and buy an asset that appreciates us your best bet.

Well I think.

Gut homes are exceptionally cheap and people should be taking advantage of that I know I personally bought a number of properties over the last year.

And and given how much leverage you can get it makes a lot of sense.

Copper is an industrial metal and it gets driven around a lot by industrial demand especially with you know hard times coming in China and in Europe.

So it's really hard to to directly link copper.

To this this monetary easing -- rubio as the first order -- fact.

But you know a day in what's interesting here is -- we we don't even need inflation for gold to go higher.

The reality is is that with all this money coming into the economy out of the central banks around the world.

People are having more and more concerned about inflation in the long run.

And they're looking to buy things were they can store value.

And gold is easy one of the things its interest -- have learned about gold myself that you because of our investing over the last year or so.

This you can go in -- -- -- hundred million dollars worth of gold and and not move the market if you go in to buy a hundred million dollars for the silver you'll -- the market all over the place.

So it's it's a big deep liquid market and I think that's going to be the destination of choice for central banks and wealthy people around the world.

Even with the additional monetary -- -- by -- by the Federal Reserve and central banks elsewhere.

Do you still -- treasuries as much as you did say earlier this year.

Yeah I I -- the you know it's interest thing I remember the tech bubble.

And people used to make fun of me in the tech bubble because I kept talking about a bubble.

From 1998 until 2001.

Of the things we have to remember about bubbles.

There's bubbles often go on longer than we expect and sometimes -- even more extreme levels we expect.

But the bottom line for anyone who was a buyer of tech stocks in that time it ended in tears.

And I think anybody who's a buyer of treasuries now it's going to end in tears.

Will it end in tears for the entire contrary Scott having detect.

Nothing.

Compared to a bubble in treasuries -- -- -- it out.

What -- sixteen trillion dollars in debt that we haven't I anyway I don't wanna scare people going into the weekend Scott is -- to say.

It's good to see today good thanks very don't have them with -- -- and Scott miners are --

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