The Gold Report: Rohit, in a recent interview you said gold is "not a guaranteed safe haven." In your view, what are effective ways to preserve capital?
Rohit Savant: If you're talking about preserving capital, it depends a great extent on your timeframe and your risk appetite.
"When the fiscal cliff debate intensifies as we get closer to the deadline, we may see the gold price rise in response."
If you're looking at the short term and want no fluctuations in your principal, the best way to preserve it would be either certificates of deposit or T-bills and hope that inflation doesn't rise significantly.
But if you are looking at the longer term and are willing to take some ups and downs in your capital, a better way of preserving or increasing your capital would be investments in equities, real estate and gold. You could reduce the risk a bit by purchasing dividend-paying equities.
TGR: Do you believe gold is an effective way to preserve capital?
RS: Over the long term, it is. In the short term, you are going to see fluctuations in prices.
TGR: What range do you expect gold to trade in through the first half of 2013? Continue reading "Rohit Savant Expects the Gold Bull Market to Pause in 2013"