“(Investors should) really focus on the fundamentals, the macro reasons for owning it. The price is really not important to me right now,” said de Sousa.
The gold price reached an all-time high of more than US$2,000 per ounce over the summer, leaving some market watchers wondering if it’s still a good time to buy.
Paul de Sousa, senior vice president and investment advisor at Sightline Wealth Management, believes the answer is “yes,” and in a conversation with the Investing News Network he explained why.
“The role (of gold) is capital preservation and purchasing power preservation. Gold is limited in supply, and with the amount of money that’s being created around the world and gold’s historical use as money and as a currency, it should be a foundation of anyone’s portfolio,” he said.
In de Sousa’s opinion, gold should account for 5 to 10 percent of an investor’s portfolio, and at this point it’s more important to own the yellow metal than to worry about trying to get in at a low price.
He pointed out that annual gold production stands at about 3,000 tonnes, and said that the value of that gold equates to the amount of money printed in the US in about 16 days.
“When individuals try to get cute and try to time an entry … (it) does not move my needle whatsoever, because I’m looking at the gold price in 20 to 30 to 40 years. This is a monetary system based on debt, a lot of money printing going on,” he said.
“(Investors should) really focus on the fundamentals, the macro reasons for owning it. The price is really not important to me right now,” de Sousa commented.
He did caution that although physical gold is a good option for getting exposure to the yellow metal, investors should not hold more gold at home than they would feel comfortable losing — alternate options include gold-backed products like exchange-traded funds.
For more from de Sousa on how to invest in gold, why it has a key role to play for investors and advice for the current environment, watch the interview above.
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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.