Investor who bet everything on gold was right; here's his forecast now
Peter Grandich, CEO of petergrandich.com, sold all his equities two years ago and allocated all his assets into gold. He has maintained his position since.
Two years ago, this was a contrarian call, Grandich said, but he told Kitco News that much higher price levels are still possible.
“Starting at home, it was considered a very irrational move and throughout my clientele as well, the thought of moving out of general equities, which at that time still had not come close to where the NASDAQ is now,” Grandich told Kitco News. “People across the board were calling gold a relic and a lot of worse things. It was more of a contrarian view than anything else. I had not been in gold for a few years up until then. Yet, when I looked at it and its history, understood or felt what was happening economically, politically, and socially, it seemed to be much more undervalued than the general equities markets.”
When asked if he would make the same decision today, Grandich said that he would be less aggressive with his gold buying today.
“I don’t think I would do it as aggressively. In fact, my personal plan is, as we appreciate after what should be a mix of consolidation, if not a fairly sharp correction for gold in the short-term, but as we get into the $2,000 and something, it’s my plan to personally weed out some of my holdings and some of the gold,” he said, adding that he would still stay away from equities.
Grandich said that a few years ago, he dismissed speculations that gold would one day reach the $5,000 an ounce level, but the political and economic conditions today make these calls possible.
He added that after the Presidential elections in November, equities can see a sharp selloff, regardless of who takes over the White House.