Precious Metals

Gold Investing

“If you’re a seller of gold right now, what are you buying? What is the alternative?” asked Will Rhind of GraniteShares.

Gold may have slipped below US$2,000 per ounce, but it remains above the US$1,900 level, and many market watchers are anticipating further gains.

With the yellow metal on the move, investors are considering their options, including selling for a profit.

Speaking to the Investing News Network, Will Rhind, CEO of GraniteShares, said in his opinion gold is a risk management tool and should have a permanent place in investors’ portfolios.

“To me (gold’s price appreciation is) just a result of what’s happening in the broader economy — it’s not a reason in and of itself to either buy gold or sell gold,” he explained.

“I think that what you’re seeing in terms of the underlying price just reflects what’s going on in the market. To me you want to be a long-term holder of gold because it’s uncorrelated to the other investments you have in your portfolio.”

For Rhind, whose company is a provider of exchange-traded funds, including one focused on gold, the yellow metal should not be traded and should not be used as a quick way to make money.

“If you’re a seller of gold right now, what are you buying? What is the alternative that is potentially more interesting or more relevant than gold?” he asked. “I think that’s why there’s so much interest in gold and people looking to hold onto gold through these times.”

Rhind also made the case for looking at the other precious metals, especially platinum, which he noted is the only one of the four precious metals that is still trading more than 50 percent below its all-time high.

“This is much more of a precious metals and hard asset rally,” he commented. “This is for people that are looking for alternatives to traditional stocks and bonds, and therefore are looking for something that is not correlated.”

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Securities Disclosure: I, Charlotte McLeod, 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.

MARKETS

Markets
TSX20180.60+0.79
TSXV678.50-1.99
DOW33912.44+151.39
S&P 5004297.14+16.99
NASD13128.05+80.87
ASX7064.30+31.80

COMMODITIES

Commodities
Gold1781.36+2.98
Silver20.23-0.01
Copper3.62+0.01
Palladium2149.50+12.93
Platinum935.75+5.75
Oil88.85-0.56
Heating Oil3.42+0.01
Natural Gas8.83+0.10

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