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In today’s economic climate, does gold have an appeal to investors beyond what Wall Street and the media are reporting?

Robert Wiedemer
May 6, 2014
Video Transcript

Gold has more appeal to a lot of people than they say or than you hear being said. Again otherwise, why would it be up almost every year for the last 13 years? I mean, it's done well. People like gold and they sort of inherently know -- call it maybe inverse cheerleading -- they kind of inherently know that's where people go if they're worried and it tends to do well. Kind of like my friend that I met in Philadelphia who is a very Mainstream manager, a lot of money and said, "If things go badly, gold is going to go over $10,000 an ounce." His words, not mine. So I think, we're going to find that gold is an alternative to the stock market. It is an alternative to other investments. If they're not doing well and gold tends to be doing better and again you're in this environment where there are financial problems due to China or in our own economy or people are just feeling more uneasy with what's been going on, gold is one of those things that becomes a real alternative.

Not for everything, nobody is going to sell 100% of their stocks and move into gold, but you saw 5% or 10% move that into gold and gold soars, you saw even a few percent of your stock market in general and gold soars. It really is a legitimate alternative more so than people think for a lot of investors, not all. Obviously, if it was for all, gold would explode through the roof and the stock market fall, but I'm saying... you have enough investors who are willing to change to make it a legitimate alternative that will really be a driving force that could push gold way up. Again, if stocks are not going well and there's financial uncertainty, I think more and more people, many money managers included, as well as individuals, will move into gold. There was a recent article on how people, individuals, felt that their strongest long-term assets were real estate, meaning their houses number one and gold number two. So after having two stock market crisis' in a decade, it's not totally surprising that even individuals are more interested in gold as an alternative to stocks at some point, but I think money managers will be too.

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