Tuesday, February 20, 2018

James Altucher Says He is So Bored of Gold

December 22, 2009 by  
Filed under Inflation Hedge Strategies

James Altrucher appeared on Tech Ticker on December 16, 2009 and declared:

“I’m so bored of gold already – it’s just a rock,” Altucher says in the accompanying video. “I don’t like betting on things where there’s just one premise – ‘everybody’s going to panic so let’s buy gold’.”  “Gold you buy when you’re depressed or anxious,” he says. “Go to a therapist and buy stocks that could have real economic value that are correlated to the price of gold and could simply go up if the economy improves, which is what you want.”

Altucher suggested Cash America CSH,  and Telecom Corp of New Zealand NZT, as alternatives to gold.

As Altucher sees it, Cash America has

the “best business model on the planet” – charging borrowers high rates and holding onto their collateral, Altucher says. These days, that collateral is often gold, which the pawn shop acquires at levels far below spot market prices and then can sell if (and when) the original owners fail to make debt payments. “As gold goes up so does the asset value in [Cash America’s] safe,”

To make matters better, Cash America is selling for only 10 times its expected 2010 earnings.

He likes New Zealand Telecom because the New Zealand Dollar, is the currency most closely correlated to the price of gold.

Atucher continued:

What’s good for gold is good for Australia, which is good for New Zealand and its primary telephone company. Telecom Corp. of New Zealand also boasts a 10% dividend and a P/E of 7. “It’s just dirt cheap.

James Altrucher is Bored of Gold

Be Sociable, Share!

Comments are closed.