Former U.S. Mint Director Edmund C. Moy: Fed Tapering Makes Case for Gold as an Asset Class; Gold Due for Robust Gains
San Francisco (Mar 30) Gold will be increasingly an important investment in 2014, as the Federal Reserve continues its tapering policy and financial markets become increasingly volatile. That's a key assessment from former U.S. Mint Director Edmund C. Moy, who now serves as Chief Strategist for Morgan Gold, a gold-backed IRA provider.
Mr. Moy made his comments at Morgan Gold's first quarterly webinar, held on March 18th. The webinar was broadcast nationally online and also had a live audience in Los Angeles. Mr. Moy is considered one of the nation's most prominent gold experts, who served as Mint Director from 2006 to 2011. The webinar was the first in a series in which Mr. Moy will outline his views on the economy, gold investing and the benefits of gold-backed IRAs.
"With quantitative easing on asset purchases from the Fed, many large investors believe the stock market is overvalued and are now turning to alternative assets such as gold," Mr. Moy said. "The five year bull run and greater return in stocks caused a decrease in gold purchases, but it's clear that trend has started to reverse itself. Investors are seeking diversity in their portfolios."
During the webinar, Mr. Moy also noted that gold purchases continue to take place outside the U.S. and Europe. "There is a strong appetite for physical gold among Asian investors, particularly those in China," Mr. Moy said. "That sentiment will begin to take hold here in the U.S. in 2014. Gold prices have historically correlated roughly with the national debt, and until the government gets its finances in order, gold is due for robust gains."