Gold Is Impossible To Value : NYU's Damodaran

NYU Professor Aswath Damodaran speaks to Kitco News about gold, the U.S. dollar, the global economy and the Fed on this edition of “On the Spot.” Damodaran says he expects the U.S. economy to grow at a “steady state” long-term because the global economy is shifting towards emerging markets. With regards to the Fed, Damodaran says that the only reason the Fed was able to maintain low interest rates is because the economy is weak rather than because of quantitative easing. “If the economy comes back, I’ll wager that no matter who the Fed chair is, interest rates are coming back.” Damodaran also says that the fears of inflation are now muted because the economy is weak. “I think the real test to whether we’ve created an inflation demon is when the economy comes back because that’s when we’ll find out whether [it] is coming because of all this quantitative easing.” Damodaran also chimes in on the yellow metal and says that you cannot invest in gold but rather trade it. “The reason that I make that point is that gold is impossible to value.” Watch now to see why Damodaran says he wouldn’t hold gold, why he thinks this currency war might have no end and where he would invest $10,000. Kitco News, November 18, 2013. (show less)

NYU Professor Aswath Damodaran speaks to Kitco News about gold, the U.S. dollar, the global economy and the Fed on this edition of “On the Spot.” Damodaran says he expects the U.S. economy to grow at a “steady state” long-term because the global economy is shifting towards emerging markets. With regards to the Fed, Damodaran says that the only reason the Fed was able to maintain low interest rates is because the economy is weak rather than because of quantitative ... (read more)

On The Spot

On The Spot
Editor-in-Chief Daniela Cambone puts some of the A-list names in the commodities space 'on the spot'. From key political & economic leaders to metal market opponents, she has guests from all over the globe answer some of the most challenging questions surrounding the resource industry. Tune in to hear what the elite have to say about the hottest topics in the industry.

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