The fairest asset class of them all

Mirror mirror on the wall, who is the fairest asset class of them all? Auric (Gold), down $200 from its high to 1857 (India's Year of the Sepoy Mutiny) an ounce. This is just a correction in gold's spectacular bull market which I called when Auric traded at $1,250 in my media column.

So my reaction to gold at $1,857 is? Yum yum gimme some. Accumulate GLD/spot gold now or, more intelligently, sell 0.8 delta one year GLD put options to generate juicy premiums. The worst case scenario is being delivered gold at, say $1,740.

I see gold at $2,800 by end 2021 as negative real interest rates exceed 2%, King Dollar gets dethroned due to epic fiscal/monetary stimulus, geopolitical angst, a savage populist/regulatory assaults on the world's top money-centre banksters amid the latest money laundering/terror financing shockers, offshore bank accounts seized by the G10 taxmen, 30 years of zero interest rates (Japan 1990 - ), the worst property bear market since the great depression, sovereign defaults from the Bosphorus to Africa's heart of darkness to the Argentine Pampas.

Plus a contested US election, 4 year pandemic, social unrest as the digital age makes 500 million jobs vanish, wars of Malthusian survival and regime changes in the Third World (oops, emerging markets).

Matein Khalid is the Chief Investment Officer of Asas Capital Management. He has 25 years of experience in international capital markets as an advisor to family offices and fund managers. He has worked for investment banks/hedge funds in New York, Chicago, London, and Geneva. In addition, he has been the CIO of a technology fund in San Francisco, a royal investment office in Dubai and a public insurance company listed on the DFM.