Hold gold for insurance purposes and trade the range — but don’t drink the Kool-Aid, says CPM Group’s Jeffrey Christian.
Most investors are familiar with gold’s value as a long-term investment, but the ability to use gold to make money in the short term is sometimes forgotten.
According to Jeffrey Christian, managing partner at CPM Group, the most successful investors are those who look at the yellow metal from both angles.
“The investors that we’ve seen who have done the best are … long term and short term. So they will own some precious metals as long-term insurance and portfolio diversifiers, but they’ll also trade the metal,” he explained on the sidelines of the Vancouver Resource Investment Conference.
“If investors try to capture that up and down they can earn better returns,” he added.
Speaking about where gold is headed in 2019, Christian emphasized that it has many large-scale influences. “We’re looking at a world where there are gathering problems in economics and politics and financial markets. But those problems haven’t come home to roost yet,” he said.
“What we’re looking at is a world where gold doesn’t necessarily rise sharply this year, but at some point those bigger problems come home.”
For now, Christian has a few pieces of advice for gold and silver investors: “you should own gold and silver as catastrophic insurance and as a long-term investment. You should probably trade the range.”
He added, “you shouldn’t drink the Kool-Aid — you’ve got guys here who have been bullish for 40 years and they’ve been right twice in that 40-year period.”
Watch the video above for more insight from Christian on the gold price, gold demand and more. You can also click here to view our full playlist from the conference on YouTube.
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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.