EDITOR'S NOTE: Join Kitco News September 21 to 24 as we cover the Clinton Global Initiative in New York City.

Reasons Gold Neared $2,000 Still In Place - Frank Giustra

By Sarah Benali of Kitco News
Wednesday September 24, 2014 12:31 PM

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."

Related Stories:

By Sarah Benali of Kitco News sbenali@kitco.com
Follow me on Twitter @SdBenali



Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

kitco news

Precious Metal Charts

Click to see this Precious Metal chart
  1. 24h
  2. 30D
  3. 60D
  4. 6M
  5. 1Y

Interactive Chart