Gold soared Friday morning to just below $1,475 an ounce, but by the afternoon the gains were gone and gold was down almost $9 an ounce. Though poised to end the day almost unchanged, the yellow metal was still up for the week and it’s anybody’s guess where it goes from here.
Michael Pento, president of Pento Portfolio Strategies and author of the new book, The Coming Bond Market Collapse: How to Survive the Demise of the U.S. Debt Market, has been invested in gold since 2001 and is certain that it’s only going higher from here.
“Gold is real and honest money,” he tells The Daily Ticker, noting it will hold value even while currencies fluctuate against each other.
Pento says there are several primary reasons to own gold:
- The U.S. Debt-to-GDP ratio continues to grow
- The level of U.S. debt has remained near $1 trillion annually for the past four years
- Real interest rates are negative
- The Fed continues its quantitative easing