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Jacob Sonenshine [00:00:00]
In terms of alternative Investments on the last several years you've had crypto currencies, you have marijuana now which is a promising industry. What reason is there for investors to continue to have demand from gold?

Nick Holland [00:00:14]
Well, gold gives you a diversification against other investments first of all. The other thing with gold is it's tangible. You can't print more gold. It's a gold bar. It's a coin in your hands. There's only a finite amount of gold which really makes it attractive. The other thing is gold tends to rise as prices rise. So it protects your capital. When maybe other things are going down, gold can go up. So it's had a role to play for a long long time. I can't see it changing into the future.

Jacob Sonenshine [00:00:46]
So if the Federal Reserve in the United States for now has paused on interest rate hikes. Do you have any concern there with gold?

Nick Holland [00:00:56]
I think that's positive potentially for gold because one of the headwinds for gold has been these interest rate hikes. When people maybe sell gold and they buy bonds etc. But now I think it's quite positive for gold. So if they live up what they say they're going to do. I'm cautiously optimistic. We could see a gold market for a while.

Jacob Sonenshine [00:01:15]
So, little bit of inflation maybe with no hikes is good for gold?

Nick Holland [00:01:19]
It's good for gold.

Jacob Sonenshine [00:01:20]
All right. Thanks a lot.

Gold has been up on the year, but if it turns out that the stock market runs low on juice, investors flocking to safety should pay attention to the precious metal. 

Gold is up roughly 3% so far in 2019. The price of the commodity moves with inflation. The Federal Reserve has backed off of interest rate hikes in 2019 as the global economy has slowed, which enables inflation to move up slightly, in turn lifting gold prices. 

The Fed's rate-hike pause looks good for Gold, "because one of the headwinds has been interest rate hikes, when people may sell gold and buy bonds, but now I think it's quite positive for Gold," said Gold Fields (GFI) CEO Nick Holland. 

The next question is whether gold prices already reflected the anticipated monetary environment for 2019. But it's still not 100% clear that the Fed will continue its dovishness, "so if they live out what they say they're going to do, I'm cautiously optimistic we could see a [good] gold market for a while," Holland added. 

Related. What the latest M&A activity in gold mean for gold prices.

Related. In other commodities news, here's how a Trump tweet sent oil prices down.

See RealMoney's Doug Kass' piece on another alternative investment, weed stocks, as he revisits the sector.