Real estate billionaire Sam Zell believes that prices are rising everywhere these days, so he has bought gold to hedge his bets, unlike his previous hedging strategy.
In an interview with Bloomberg TV, Zell said, “Obviously one of the most natural responses right now is to buy gold. What’s interesting is that I’ve always said in the past, why hold gold? Gold doesn’t pay and it costs money to store. However, when I see the currency depreciate, what other investment underlying can I put in?”
Zell, 79, said he was referring not only to the dollar, but other countries that print money as well, and he also questioned whether the heating up of inflation was only a temporary phenomenon, as Powell said last week, “Folks, we’re seeing that there’s inflation everywhere. Prices are also going up in all industries except for lumber prices. The supply chain is clearly facing bottlenecks and prices are rising as a result. Reminiscent of the 70s.”
Gold is an attractive investment, but now is not the time to invest in fossil fuels,” Zell said. Zell had agreed in 2019 to set up a joint venture with property tycoon Barrack to invest in oil and gas. He also said he was concerned about renewable energy destabilizing the grid and possibly repeating previous blackouts in California and Texas.
International gold prices were lower in the 5th session, mainly due to the stronger performance of the dollar, as well as investors are expected to climb the U.S. bond yield will cut the attractiveness of gold. New York’s gold spot 5 intraday fell 0.1% to $1,776.71 per British tael, while gold October futures wandered below the flat.