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New York City (Kitco News) - There is a reason to hold gold but patience is a virtue, said Frank Giustra, renowned resource investor and co-founder of the Clinton Giustra Enterprise Partnership.
"All the reasons why gold went to $2,000 in the first place are still there, and in spades," he said during an interview with Kitco News’ Daniela Cambone at the Clinton Global Initiative annual meeting on Tuesday.
Gold is currently stuck in a 'no one cares phase' but his views on the metal remain unchanged, he said on the sidelines of the annual meeting in New York.
"Nothing has changed fundamentally to tell me in any way that one should divest of their gold position," he said. "I just think you have to have some gold in your portfolio because currencies are being devalued by money printing worldwide."
|Frank Giustra, co-founder of the Clinton Giustra Enterprise Partnership and CEO of Fiore Financial talks with Kitco News during the 10th annual Clinton Global Initiative annual meeting, in New York City.|
Looking ahead, Giustra, who is also the CEO of Fiore Financial, said that he does not expect to see a robust U.S. economy once the Federal Reserve ends its quantitative easing program. Last week, following the Federal Open Market Committee Meeting, Fed Chair Janet Yellen confirmed the central bank intends to end its monthly bond-purchase program in October.
"I think the accommodative policy that's been in place for a number of years now is going to have to continue in some fashion, and that's always good for gold," Giustra argued.
Catching the Canadian investor's attention these days are the gold mining stocks.
"For many years I liked physical [gold]," he said. "But now, what's happened in the last couple of years with this very severe bear market in the mining sector is that the gold stocks are becoming much more interesting," said Giustra who also serves as an advisor for Endeavour Mining.
Giustra, remains optimistic for gold, ending off the interview with one clear message:
"I think we're in the middle of a very long-term bull market in gold […] the situation hasn't improved, in many cases it's gotten much worse, so there is a reason to hold your gold."