In an interview at the 2016 Mauldin Economics Strategic Investment Conference, legendary investor Jim Grant noted, “Cash simply enables one to retain wealth, with an eye towards being opportunistic.”
Raising cash and reducing your exposure to volatile financial markets in turbulent times obviously make sense. The key, of course, is finding a safe, profitable investment opportunity to deploy your cash.
The founder of Grant’s Interest Rate Observer believes gold may be that investment. In the interview, he went on to say, “Gold isn’t so much a hedge against Armageddon… as it is against monetary shenanigans.”
He also noted he expects gold to continue moving up: “When the economic establishment encourages the idea that gold is ‘good for nothing,’ it’s almost always a good time to buy [gold].”