Tags: Bass | Fed | Gold | Investment

Kyle Bass: Fed Has Made Gold a Solid Investment for Years

Wednesday, 14 Mar 2012 07:54 AM

Hayman Capital hedge fund manager Kyle Bass says that the pattern of central banks monetizing debt is set, making gold a solid investment for years to come.

“You can call it what you want,” Bass tells CNBC. “You can call it LTRO, quantitative easing, whatever the powers that be want to call it.”

“I call it money creation out of thin air, and therefore, gold has got a lot further to go.”

Editor's Note: You Owe It to Yourself to Know What Obama and Bernanke Are Hiding From Americans

Even when you think about the ways in which economies such as India and China, which are two of the world’s largest gold buyers, might slow down, gold appears secure for now.

“If India had stagflation, I think you could continue to see gold move higher,” says Bass.

Bass counsels taking physical delivery of gold investments.

“If you’re going to own gold … for a long-term investment, it costs you a certain amount of money to roll a front month’s futures contract” and if you take delivery of physical gold, you have to pay storage and insurance fees, Bass notes.

“Rolling costs about 90 basis points a year,” says Bass. “That’s an inexact science because of where you execute.” However, Bass’s hedge fund was able to negotiate a storage deal for a whole lot less.

The Business Insider reports that, starting October 1, 2012, Singapore will be the best place in the world to store gold because regulation is minimal, corruption is among the lowest in the world, and the tax structure is very friendly to businesses and investors.

Editor's Note: You Owe It to Yourself to Know What Obama and Bernanke Are Hiding From Americans






© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
285
2012-54-14
Wednesday, 14 Mar 2012 07:54 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved