Make Kitco Your Homepage

Hold gold, but hope it doesn't go up - Dominic Frisby

Kitco News

Editor note Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day's top stories directly to your inbox. Sign up here!

(Kitco News) - The key argument for gold is insurance, said Dominic Frisby, author of

On May 6, 2023, Frisby spoke to Kitco at Deutsche Goldmesse in Frankfurt, Germany.

Frisby gave the rationale for gold.

"I'm a big believer in the maximum of putting five or ten percent of your net worth in gold and then hoping it doesn't go up," said Frisby, noting the metal's longevity as a store of value. "The instinct for gold is the most deep-rooted commercial instinct in the human race. In a nutshell, that is why you should own gold: because there is a permanence to it that no other substance has."

Frisby said gold does best when trust in the system is low, noting heightened culture wars and other conflicts.

"Financial crises seem to get more frequent," said Frisby. "You can just feel trust in the system generally eroding."

Frisby is a fan of Bitcoin and believes investors should hold both.

"There's a real generational divide between gold and Bitcoin," said Frisby. "Bitcoin has proved to be the most fantastic educational tool. It has educated people about fiat money and the nature of money."

Coverage of Deutsche Goldmesse 2023 sponsored by Defiance Silver.

'How many banks are going to need to fail?' - Matterhorn's Matthew Piepenburg on financial contagion

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.