Rates are rising, and lawmakers are brawling over budget cuts. Fear is in retreat, and gold is getting kicked to the curb. Even the chartists are piling on the precious metal today, noting the occurrence of gold’s first death cross in over a year, as the spot price dips below $1600 an ounce. As ominous as all of this seems, at least one gold bug says he is undeterred.
“I’m a fundamental guy. I care nothing about golden crosses or death crosses or anything of the kind,” says Michael Pento, founder and president of Pento Portfolio Strategies. While he currently holds about 15% of his portfolio in gold and admits he’s “not happy,” he’s confident his bullish call will vindicate him in the near future.
“The central bank has adopted an inflation target, and I believe Mr. Bernanke will hit that target — and exceed it,” Pento adds.
See the full “Breakout” interview below:
Related: SPDR Gold Trust (NYSEARCA:GLD)