Time To Own Physical Gold, Not ETFs - Grant Williams

(Kitco News) - The gold picture is becoming clearer and it might be wise to own the physical – not paper – metal, this according to a popular newsletter writer.

“I don’t buy gold at $1,100 because I think it’s going to $1,200, I buy it for what it does, not what the price is, the price is the last consideration for me,” said Grant Williams, creator of Things That Make You Go Hmmm, at this year’s Mauldin Strategic Investment Conference.

Gold prices have been struggling since the U.S. Federal Reserve hinted at potentially raising interest rates as early as next month. Overnight June Comex gold futures fell to a 3.5-month low at $1,199 and ended the Monday’s holiday electronic trading session at $1,205.70 an ounce.

However, central bank policies around the world have Williams optimistic on the yellow metal as more investors see the bigger picture and remember gold’s appeal.

“I think we’re getting to the point where people are going to be able to see the picture and at that point, gold is the answer, it’s not just an asset anymore, it’s the answer to a lot of people’s questions,” he said.

“I think when we get to that point where people want to own gold, ETFs won’t suffice anymore,” he added.

Gold will react as central banks’ credibility is questioned, Williams continued, and prices will move higher.

Williams also warned against what seems to be the cashless trend society is headed in and why policymakers may be for it.

“The thing you’re being discouraged most of is cash. If people hoard cash, it negates what the Fed is trying to do,” he explained.

If cash becomes completely digital, the government will have the ability to easily reach into people’s bank accounts and take whatever is needed, especially to stimulate the economy, he noted.

"At some point, they’re going to have to take money from the people who have it to fill the hole of the people who’ve spent it. This is a perfectly logical next step in their process."

Courtesy: Kitco News