NEW YORK ( TheStreet) -- Gold prices ripped above $1,300 per ounce, but as John Mauldin, president of Millennium Wave Investments, tells TheStreet's Joe Deaux, the daily price fluctuations aren't as important as the long-term moves.
Mauldin called the yellow metal a hedge against central bankers, although he doesn't see them doing anything unreasonable anytime soon, with the Federal Reserve on the brink of tapering its stimulus program.
So rather than buying large positions in the precious metal now, he suggests doing what he does: Accumulate small positions in gold over a long period of time.
He said that investors could make monthly investments in physical gold or ETFs and should not fixate on the price they're paying today, but rather, what it could be worth down the road.Although the data don't suggest a recession is in the cards in the immediate future, Mauldin said that the economy is not recession proof and we'll eventually have another one. Historically, we rarely go 10 years without some sort of recession, although he acknowledged he didn't see one in the next two years. However, if one did emerge, what would the Fed do? With interest rates already so low, the only thing left would be another round of quantitative easing, which would positively affect the price of gold. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell