[video] Quick Take: Will Gold Market Ignore Fed Tapering?
NEW YORK (TheStreet) -- After the soft August jobs data was released on Friday, markets flew into limbo as to whether the Federal Reserve would hold back on its potential tapering efforts.
Olivier Garret, CEO of Hard Asset Alliance, told TheStreet's Joe Deaux that the Fed seems to have embarked on "QE Infinity" -- meaning that it'll never be able to eliminate the stimulus program.
He went on to say that as the buying from foreign countries has slowed, the Fed's program is going to be the only way to finance America's increasing debt load.
The Fed will have to keep printing money, he said, driving up the price of hard assets, mainly gold.Garret said that gold wouldn't be becoming more valuable, but the purchasing power of investors would be getting weaker, so each ounce of gold costs more. As for the Fed announcement this month, it could have a short-term effect on the precious metal -- especially if some form of tapering is confirmed. However, that doesn't mean it will hurt the long-term prospects of the yellow metal. Garret concluded that if gold sells off on this news, then it becomes a buying opportunity. The current environment is good for accumulating a long-term position, since gold should continue to trend higher. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV