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George Gero on how gold saved his life and how it can save you from the coming volatility

Kitco News

(Kitco News) - George Gero, managing director of RBC Wealth Management, warns investors that more volatility will hit the markets.

“We’re getting volatility for a lot of reasons. I think, the most important reason, is that we have a lot of people not really fully understanding the value of owning gold over the long term. Gold actually has a 5,000 year history of being a store of value in maintaining purchasing power,” Gero told Kitco News. “However, in its many forms, gold has many purposes, and many traders use gold as a hedge against stock fluctuations, bond fluctuations. Other people think that gold is a haven against political problems.”

Gero cited rising geopolitical tensions around the world, like with China and the U.S., as one of the risks that investors need to be hedged against.

Gero’s history with gold dates back to his youth, when as a political refugee in Europe in 1945 he was able to escape with the help of gold coins.

“As a young child, at the age of two, in Hungary I was an enemy of the state for having been born in England and having a background of Jewish parents. Later on, the Jesuits saved my life, I was in a Jesuits boys’ home for some time. My father had been in Portugal, he was a banker, and gold coins and gold bars helped save our lives because my mother and my sister and I were able to get out of Hungary in 1945 with gold coins at the border,” Gero said.

Gero added that gold serves as a benchmark of macroeconomic performance.

“The price of gold, to a lot of investors, is a barometer of our economic and political well-being,” he said.

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 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.