Citing deepening concerns of a crash in sovereign debt, our favorite critic of the Federal Reserve has turned “Very Bullish” on Gold prices…
Submitted by Mark Obyrne, Goldcore:
Jim Grant is “very bullish on gold” due to deepening concerns of a crash in sovereign debt. The monetary historian and expert, financial journalist and editor of the investment newsletter ‘Grant’s Interest Rate Observer’ is always worth reading and listening to.
Grant gave voice to his deepening concerns in an excellent interview with Swiss business newspaper ‘Finanz und Wirtschaft’ (Finance and Economy):
“From multi-billion bond buying programs to negative interest rates and probably soon helicopter money: Around the globe, central bankers are experimenting with ever more extreme measures to stimulate the sluggish economy.
This will end in tears, believes James Grant. The sharp thinking editor of the iconic Wall Street newsletter «Grant’s Interest Rate Observer» is one of the most ardent critics when it comes to super easy monetary policy.
Highly proficient in financial history, Mr. Grant warns of today’s reckless hunt for yield and spots one of the biggest risks in government debt. He’s also scratching his head over the massive investments which the Swiss National Bank undertakes in the US stock market.”
As to what investors should do to protect themselves from this risk, Grant is very clear:
“I’m very bullish on gold and I’m very bullish on gold mining shares. That’s because I think that the world will lose faith in the PhD standard in monetary management. Gold is by no means the best investment. Gold is money and money is sterile, as Aristotle would remind us. It does not pay dividends or earn income. So keep in mind that gold is not a conventional investment. That’s why I don’t want to suggest that it is the one and only thing that people should have their money in. But to me, gold is a very timely way to invest in monetary disorder.”