Investors often feel overwhelmed by the many personalities forecasting the market trends on the media. The emotional side of investment is always affected by this matter.
Now is the turn for Jim Rickards, who spoke about the gold upcoming opportunities during CNBC’s Squawk Box last Monday. He recommended investors to put physical gold among the priorities.
The main reason he claimed for such a thing was that many central banks all around the world are taking desperate measures in order to increase inflation. This is having a deep impact on physical gold’s prices.
So according to him, this is a smart move backed up by central banks’ ongoing and future plans to work with the damaged economy.
Mr. Rickards told CNBC that low interests, which are a hot matter right now by the way, allows the gold holder to be relaxed, because there aren’t other better alternatives to analyze closely.
In fact, during the interview he gave a straightforward advice, telling that everyone should have a 10 percent of their portfolio in physical gold. This is a pretty detailed recommendation that many investors may be applying now.
In order to back up his own point of view, Mr. Rickards also made emphasis on the recent comments from seasoned investors like Gorge Soros and Bill Gross, who told the media that people should put gold among their short-term priorities for investments.
Establishing a Difference
Mr. Rickards made a clear distinction between physical gold and futures. He claimed that the former is the winning player for this scenario, while paper gold would not perform even close to it when the proper time comes.
This is an advice that is really hard to ignore. Jim Rickards is a well-known gold expert with several publications on the shelves. These same publications have enjoyed popularity among analysts and investing experts.
He graduated from The Johns Hopkins University with a Bachelor of Arts degree before getting its Master in International Economics.
A fruitful career allowed him to gain fame among financial institutions and media. He worked on Wall Street for more than three decades. Also, Mr. Rickard has testified before the U.S. House of Representatives to present his point of view and opinions about the risks the economy was facing after 2008.
People are Losing Faith
While Mr. Rickards is talking so positively about acquiring physical gold, other analysts are convinced that the bullish trend this precious metal is enjoying is actually cooling down. They are suggesting that it’s time to go out before gold start losing big points.
According to a recent publication from Bloomberg, many hedge funds and speculators are getting out from the gold rally because they are losing faith in the metal. The negative forecasts are talking about a weakened market, which is not going to report gains like during previous weeks.
A solid part of this forecast is that investors have more interest on the upcoming economic reports that are about to be released by the FED. The last time, these reports were positive at some degree, so some observers have chosen to trust in the economy indicators for the third quarter over the yellow metal.
While this can be partially true, the central banks still are on their quest to increase inflation. Even when this isn’t going so well, gold is still benefiting.
Today’s trading session closed at US$1350.90, representing a 2.50 percent gain. A few days have passed since both Mr. Rickards’ declarations and Bloomberg’s forecast, but the gold rally is still there, making some investors really happy.