Buy Gold And Energy Stocks As An Anti-Inflationary Hold
The precious metal that made California a state has been on the hold list of commodities for some time. While the precious stuff is getting less from jewelers and from industrial users, investment advisors are still bullish on the buying and holding of gold mining stocks.
This January, the price of gold dipped and some of the speculation has been that more of the shiny metal is available than is needed by jewelers and industrial users of gold. That, however, is not putting a dim light on the magic metal for many investors.
Those are not the only gold stocks that make John Paulson’s hedge fund a shiny bushel of bullion. John Paulson’s hedge fund owns 19.5 million shares of Kinross Gold trading as KGC. Due to the downswing in gold in January, John Paulson sold off some of his previous 33.1 million shares of KGC.
John Paulson likes gold because he deals in profits made by inflation. As, John Paulson sees it, inflation will re emerge in many economies besides the United States due to the increase in the price of commodities. While most of his hedge fund is heavily invested in gold stocks, John Paulson is also buying heavily in energy stocks. As he sees it, energy stocks will also do well if inflation returns. Last quarter, John Paulson bought 7.2 million shares of Transocean trading as RIG and 7.8 million shares of Anadarko Petroleum trading as APC.
John Paulson seems to be combining all of the current thinking in the buying and holding of gold mining and industrial stocks. However, his interest in energy stocks seems to be a hedge against further dips in gold. Both gold and energy stocks are seen as a safe way of making money on inflation.
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