Gold always glitters: Sokoloff

By Jit Kumar
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Apart from the yellow metal, the global investment strategist also advocates crypto currencies as an alternative investment form

If you haven’t already, this is the right time to stock up on gold. The precious yellow metal is an asset class that does best in a market downturn, when most stocks are hit by losses, says Kiril Sokoloff.

In a recent podcast interview with Real Vision Finance, the global investment strategist advocated buying gold to investors seeking out an alternative to stocks amid the Covid-19 crisis. His simple message—gold always glitters.

“All roads lead to gold. So if everything is fine, and the Fed (Federal Reserve) reflates, and we go about our business, and gold will just do fine. It’s a pure supply/demand issue. (But) if it’s a banking system financial crisis, gold will do incredibly well because it’s outside of the banking system. If there is a debt deflation, gold will do extremely well. So all roads lead to gold.

“And it’s very under-owned, misunderstood. And people own gold in the United States in the gold ETF, which is—if you’re going to get out of favour, you’re going to get into a hard asset, you’re not going to own it to an ETF. Own the real, physical thing,” Sokoloff told host Raoul Pal, a renowned economist, as both analysed the potential outcomes of Covid-19.

Pal agreed. “Our game is all built on trust. Without trust, there’s nothing. And that’s why gold has a value. Gold has always had a value because we trust it. But other things we lose trust in,” he said.

On the podcast show, both the market veterans also analysed the millennial generation’s growing love for crytpo currencies even in this times of crisis. Pal attributed the reason to these young adults in their 20s and 30s witnessing two other financial crisis in their lifetime.

“This is because they don’t trust the world that they come into.

Because the millennial generation saw the 2008 collapse. They kind of finish university or around university age. They were kind of born around the—or just young when they saw the 2000 collapse. They don’t trust anything anymore,” Pal said.

“This new rising generation loves Bitcoin. And that will be the ones who will be running the world in not too long from now,” added Sokoloff.


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