Gold Soars To Seven-Week High
Go Long Gold!
Clem Chambers, CEO, ADVFN is long gold as he believes it is a good hedge against inflation.
“I am long gold effectively,” ADVFN chief executive Clem Chambers tells CNBC in a May 13 interview. “No, it isn’t over $2,000 yet, but I think people that drove it to $1,600 are expecting inflation to be strong by now, and inflation isn’t strong by now. You can see strong inflation in certain places, in certain sectors, etc., but overall we don’t have a broad runaway inflation situation just yet, so that’s what’s holding gold back because people are simply not seeing the inflation they expect to see. … It will come, and in some way it’s there in certain places.”
Now is the time to bet against fiat currencies, he says. “Personally, I choose to be short money. I think it’s money that you need to be short of. And of course buying gold is very similar to being short money. But it is a risk asset. I mean all assets are risks. …
“I’m not a short-term trader per se. I wouldn’t hold gold for a week or a month. I’ve been holding my gold and analogs for a decade, and that’s in numismatics, so my gold is all in rare gold coinage, and that’s going completely berserk at the moment. A lot of people are worried about holding paper gold. If you’ve got a gold ETF, where’s the gold? If you’ve got a gold mine, is it hedged, etc., etc.? Pure gold is hard to hold. And if you look at where you can buy pure gold, there is demand there. But it’s a long-term play. What is the solution to all the problems of the West at the moment? How are they going to get out of this? The only way they could possibly get out of this is through inflation. Well, what does that do to your cash? It really destroys it. So where do you put your money? Well, you have to put it into hard assets. Gold is a classic hard asset.”
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