Tags: Hyland | gold | commodity | inflation

US Commodity Funds' Hyland: Gold Has Little Value as Inflation, Crisis Hedge

By    |   Monday, 14 October 2013 09:16 AM

Gold advocates tout the precious metal as a hedge against inflation and against a financial or political crisis.

But John Hyland, chief investment officer of United States Commodity Funds, doesn't see it that way. His firm manages exchange-traded securities based on commodities.

"There are a few reasons why you might want to hold gold. And then the question is, Are there better things you could hold other than gold? Otherwise, don't hold gold at all," Hyland told IndexUniverse.

Editor's Note:
Get Tom Luongo's Gold Stock Adviser — Click Here Now!

Hyland doesn't see gold as a safe haven. " I don’t think you can describe something as volatile as gold as really a safe haven."

As for inflation, "there are a couple of commodities that actually have stronger correlations to inflation and strong long-term, positive real return," he explained.

Hyland cites crude oil and platinum and says he'd use a basket of commodities to protect against inflation.

"If you're worried about monetary disruption or financial crisis, gold might pop if there's some repeat of 2008. But I think I'd almost prefer a far-out-of-the-market option like on the S&P 500 than to actually own gold."

Finally, if there's a collapse of government control, "why would you want to own gold? Wouldn't you be better off owning boxes of 9 millimeter ammo?" he asked.

The precious metal plunged to a three-month low of $1,259.60 for the December Comex contract Friday amid optimism the budget/debt ceiling impasse would be resolved in Washington.

"A deal in the making and eventual slowing of the [monetary] stimulus are very negative for gold," Frank McGhee, head dealer at Integrated Brokerage Services, told Bloomberg.

But as of early Monday, it was very uncertain when or if Congress might come to an agreement.

Editor's Note: Get Tom Luongo's Gold Stock Adviser — Click Here Now!

Related Stories:

Goldman's Currie: Gold Is 'Slam Dunk' Sell After Shutdown

Morgan Stanley Sees Lower Gold Price in 2014 as Goldman Says 'Sell'

© 2020 Newsmax Finance. All rights reserved.


   
1Like our page
2Share
Markets
Gold advocates tout the precious metal as a hedge against inflation and against a financial or political crisis. But John Hyland, chief investment officer of United States Commodity Funds, doesn't see it that way.
Hyland,gold,commodity,inflation
329
2013-16-14
Monday, 14 October 2013 09:16 AM
Newsmax Media, 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