Fox Business- Gold 'Important' Safe Haven to Consider: Market Expert
Article by Talia Kaplan in Fox Business
Lane Generational managing partner and founder Fred Lane stressed the need to invest in "real assets" on Tuesday, arguing that that gold is "important" to consider as the commodity is a safe haven.
Lane made the argument on "Mornings with Maria" on Tuesday ahead of the release of the highly anticipated consumer price index, which provided a fresh look at just how hot inflation ran in March.
"One of the assets that we think is important to consider, frankly, is gold," Lane told host Maria Bartiromo. "Not only gold as an asset, but also the gold streamers and the gold miners."
"There’s 20 times more paper gold out there than there is real, physical reserves of gold in the world," he added.
Lane then clarified what he means when he references "paper gold."
"These are options, these are futures contracts, so there’s a huge multiplier effect out there where existing physical gold has been hypothecated," he continued. "In the event that enough investors were to basically say, ‘I want physical gold, I want the gold delivered,’ we would have a run on gold. It would be incredible."
Inflation soared in March to a new four-decade high as the Russian war in Ukraine fueled rapid price gains for oil and gas that wiped out the benefits of rising wages for most Americans.
The consumer price index rose 8.5% in March from a year ago, according to the new Labor Department report released Tuesday, marking the fastest increase since January 1982, when inflation hit 8.4%. The CPI – which measures a bevy of goods ranging from gasoline and health care to groceries and rents – jumped 1.2% in the one-month period from January.
"I also think we’ve had such fiat currency debasement globally that I think people are looking at gold as a safe haven,"Lane said. "We certainly see it as a safe haven."
"We think the price is depressed frankly because of the impact of paper gold," he continued. "We think that will reverse itself."
Lane predicted gold will hit $2,500 an ounce one year ......
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