Doug Casey: There’s an “Excellent” Chance of a Panic into Gold

Interview conducted by Charlotte McLeod; article text by Scott Tibballs.

Speaking with the Investing News Network (INN) at the New Orleans Investment Conference at the start of this month, Doug Casey of Casey Research shared his thoughts on the coming years in the investment space, saying that for those with wealth, the challenge will be holding on to what they have rather than making more.

“We’re entering a bear market — it’s been a long and very steep bull market. These things are cyclical [and] the next step is down, and I think it’s going to be a very serious step down,” said Casey.

He added he wasn’t concerned about a bear market though, noting that he was more worried about the role of PC culture in the downfall of western civilization among others.

“My financial advice in light of the fact that stocks are very expensive and are floating on air like Wile E. Coyote after he walks off a cliff, and the bond market is already in a bear market, and real estate floats on a sea of debt and basically moves inversely to the bond market— is get out of these conventional things.

“That’s simple financial advice. The only thing cheap in the financial world today is commodities, so I am a bull on commodities, and gold in particular.”

Casey reasons that very soon, “there’s going to be a panic into gold because it’s the only financial assets that’s not simultaneously somebody else’s liability.”

He didn’t have much love for mining exploration though, saying that his interest in mining and commodities was as a speculator rather than an investor.

“With the world financial system as shaky as it is, there’s an excellent chance there’s going to be a panic into gold, and those stocks could explode upwards in value, so I like them as speculation.”

Casey’s tips for investors in a shaky environment was to look to sandbag what you have. “I would buy gold coins. I would hold short-term t-bills so you have liquidity, so if you see value, you have liquidity to jump on it.”

He also talked about stocks that have been good to him in the past few years — such as cryptocurrency, which he believes could have another run — and pot stocks, though he added that pot stocks were currently a bubble “so I’m hitting the bid with everything.”

Listen to the full interview for more of Casey’s thoughts. You can also click here to see the full New Orleans Investment Conference playlist on YouTube.

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Securities Disclosure: I, Scott Tibballs, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.