Also in this playlist...
This transcript is automatically generated
-- well -- deal to avert the fiscal Clinton not just lifting stocks gold prices hit two week high.
Getting close to seven and he hundred dollars an ounce.
Next guest says the gold will hit 2000 this year joining us now frank Holmes US global investors CEO and chief investment officer.
Now break my fear because a lot of the -- you say you gotta buy gold -- was about 7% for the year was so was Johnson & Johnson seven and a half percent less I got a dividend.
Or apple up 35%.
And I still got a dividend so.
Why -- buying into these gold bugs.
There's gonna do it there would continue to be a battle between fiscal austerity and monetary reflation.
It appears a monitor inflation is strong in a war remains strong.
Thank you take a look as -- as a case study.
We're gonna have QE four in QE five.
And there's a high correlation to gold prices rising and monetary basic rising.
So really this is a bet on more liquidity that's -- were taken here.
It's a combination of two things one is negative real interest rates.
And whenever you've had negative real interest rates gold -- -- now a five year government note pays less than 1%.
Inflation is just under 2% a ten year government note -- just plastic.
Is basically less than the inflation generate why would one ever -- tenure -- note when you're basically going to by a loss each year for the next ten years.
And gold is always performed well during deflation.
Fair enough but at the same time you know liquidity -- equities as well right we've seen this in the stock market.
And -- -- the dividend -- is rising a little bit I don't think it's enough to deter people from actually buying into dividend stocks.
In 2013 so why would not just go to the equity market.
What's important I think -- wanna buy gold equities and that's something that's a key point.
They've been increasing their dividends all of last year and what's really interest thing is that since 1984.
And during election year gold stocks -- underperform.
In the following year the post election year doesn't matter Democrats Republicans gold stocks put on spectacular performance.
So mathematically the odds favor of gold to rise based on this oversold on and we've take a look at these models we created.
Going back the past twenty years gold is due for a rally of fifteen to 20%.
And when you look at the post election cycle dividend paying gold for companies like Franco Nevada except -- are very attractive.
So let's talk about this -- -- -- so Franklin about a one year picks.
You do not buying the blocks of gold yeah actually gone out and buying these stocks now are you looking at the miners -- -- looking at in particular in the stock world.
-- coming back to buying dividend paying stocks I think it's very very -- in gold should be between five and 10% weighting in a portfolio.
You don't buy gold -- get rich is basically an insurance and your portfolio.
And we think 5% into bullion or jewelry good quality jewelry is gone up dramatically in the past five years.
The same time good -- dividend paying stocks and copies that are growing their balance sheet.
Frank -- thanks for the tips.
Filter by section