Kyle Bass: 'Keep Your Gold' (GLD)
Gold is making a rebound and noted hedge fund manager Kyle Bass is feeling pretty solid about the metal.
According to Bloomberg, Bass advised the University of Texas Investment Management Co. ("Utimco") to hang on to gold in its investment portfolio. Bass said he sees deflation in its holdings and inflation in the things they need.
Over the last four months of 2011, Utimco lost almost 3.8 percent, a swing from the 4 percent gain realized by the S&P 500 over the same period.
Bass cites recent Fed comments to keep rates low "for an extended period," which recently got pushed back from mid-2013 to the end of 2014 with the recent announcement. Lower rates will add to the devaluation of the dollar against other major currencies, making commodities a more sensible investment according to Bass.
Gold April contracts are $22 lower to $1,737.3 per ounce on the Comex. SPDR Gold Trust (NYSE: GLD) is down 1.2 percent.
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According to Bloomberg, Bass advised the University of Texas Investment Management Co. ("Utimco") to hang on to gold in its investment portfolio. Bass said he sees deflation in its holdings and inflation in the things they need.
Over the last four months of 2011, Utimco lost almost 3.8 percent, a swing from the 4 percent gain realized by the S&P 500 over the same period.
Bass cites recent Fed comments to keep rates low "for an extended period," which recently got pushed back from mid-2013 to the end of 2014 with the recent announcement. Lower rates will add to the devaluation of the dollar against other major currencies, making commodities a more sensible investment according to Bass.
Gold April contracts are $22 lower to $1,737.3 per ounce on the Comex. SPDR Gold Trust (NYSE: GLD) is down 1.2 percent.
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