Tuesday, October 1, 2013

[video] Quick Take: Fed Puts Gold Bugs Back in Game

Best Cheap Companies To Buy For 2014

NEW YORK (TheStreet) -- With the Federal Reserve's decision not to taper its asset purchases, gold is getting a nice boost.

Telling TheStreet's Gregg Greenberg his take on the yellow metal is Christopher Blasi, president of Neptune Global Holdings.

Gold prices are near $1,370 an ounce, and Blasi said the Fed is helping the metal's long-term move higher, after suffering a nasty correction earlier this year. Investors can gain exposure to gold by purchasing the SPDR Gold Trust (GLD).

Blasi also said the metal should be substantially higher in two to three years but may have some downward pressure in the next three to four months. Ultimately, when central banks print money, they weaken a nation's currency strength, subsequently weakening the purchasing power for assets such as gold. That means more money is required to buy the same amount of something -- for instance, an ounce of gold. However, Blasi said he expects that the U.S. dollar will get a bounce soon, which will put downward pressure on the precious metal. Overall, though, he expects gold to be just fine over the long haul. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell

No comments:

Post a Comment