Where I’m Putting My Money as Global Chaos Looms

As the world continues to face economic turmoil, what is the path forward for the gold price?

Doug Casey of InternationalMan.com shared his thoughts with the Investing News Network, saying he thinks the yellow metal could reach US$3,000 per ounce in the next year for various reasons, including the trend toward de-dollarization.

He pointed out that countries like Russia and China don’t want to trade with each other in dollars, but also don’t want to use rubles or yuan. With that in mind, gold could be “re-institutionalized as actual money,” which would drive it higher.

“Right now, relative to everything else in the world … gold is reasonably priced I’d say. But my guess is that as the world descends into chaos — and I think that’s true, we are going to see chaos later this year and throughout this decade — there’s going to be a panic into gold because it’s the only financial asset that’s not simultaneously someone else’s liability,” Casey said.

In his view, that means the yellow metal will become a good speculation, as well as a good vehicle for savings.

“As a speculator, one of the best places cyclically to be is now smaller gold stocks, which are very, very cheap — like all-time lows relative to the price of gold. At some point the public is going to pile into them, and since they’re not even small caps, they’re not even micro caps, they’re not even nano caps — some of these stocks are pico caps. They could be quite explosive,” he said.

Casey also spoke about where else he’s putting his money, pointing first to oil. “I’ve been long oil, but especially medium-sized oil companies, especially small Canadian companies, many of which are yielding 8 to 10 percent in current dividends,” he explained, adding that he sees those dividends going up as prices for oil go higher.

He’s also interested in medium-sized natural gas companies, which have the same type of dividend yields.

“So oil, gas, small companies that produce them — and metals. All the metals quite frankly are I think reasonably priced right now,” Casey continued. He owns real estate too, but said it’s important to diversify internationally.

Watch the interview above for more from Casey on his current strategy for investing and speculating.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.