May 7, 2021
A pair of gold miner ETFs from Direxion might be the way to tail legendary investor Sam Zell’s bet on gold, given current inflationary pressures.
As the U.S. economy starts to re-open amid the Covid-19 vaccine deployment, the cost for goods and services could be on the rise. This, in turn, could weaken the dollar while stimulus money is already being pumped into the economy.
It could be tangible assets like gold that could see strong demand. The precious metal is one of the ways investors can shield themselves against a rising tide of inflation.
“Obviously one of the natural reactions is to buy gold,” said Zell in a Bloomberg Television interview. “It feels very funny because I’ve spent my career talking about why would you want to own gold? It has no income, it costs to store. And yet, when you see the debasement of the currency, you say, what am I going to hold on to?”