SalemNews.com, Salem, MA

Local News

March 7, 2012

Lutts bullish on gold during Business Expo

DANVERS — There may or may not be gold in them thar hills, but if Robert Lutts has his way, it would be in your portfolio, along with some stocks.

Lutts, president of Cabot Money Management in Salem, made his recommendation about investing in gold as a hedge against inflation during a breakfast talk yesterday at the North Shore Business Expo.

"Inflation is starting to build, and in two or three years there is going to be a real problem," he said, adding that investors should start hedging now by moving into more aggressive and alternative investments, such as gold.

Lutts said gold is trading at about $1,700 an ounce. Last year at this time, it was $1,400 an ounce.

However, gold as an investment is hard to understand, he said, and he has yet to see large institutional investors "jump in, in a big way." Investors who don't want to buy physical gold, he said, can invest in it through exchange-traded funds.

Lutts, who characterizes himself as an "independent thinker," makes appearances on TV financial networks and has been quoted in leading newspapers, financial and otherwise. He has been keeping a close eye on the emerging markets in China, India, Brazil and elsewhere. One of the many slides he presented yesterday showed him in Mumbai, India, three weeks ago.

His point was that while India's Sensex stock index took a hit last year, it has had an annual return of 16 percent over the last 10 years.

Still, there is no shortage of things to worry about in the economy, from jobs, to a flat housing market, to the prospect of inflation, to the nation's $15 trillion debt, Lutts aid.

Still, he was upbeat about the U.S. economy, which he said is a global economy that drives jobs and economies around the world.

Text Only | Photo Reprints
Local News

AP Video
Raw: Israel Bombs Multiple Targets in Gaza Veteran Creates Job During High Unemployment Raw: Cargo Craft Undocks From Space Station Widow: Jury Sent Big Tobacco a $23B Message New Orleans Plans to Recycle Cigarette Butts UN Security Council Calls for MH 17 Crash Probe Obama Bestows Medal of Honor on NH Veteran Texas Sending National Guard Troops to Border Hopkins to Pay $190M After Pelvic Exams Taped Foxx Cites Washington 'Circus Mirror' NASA Ceremony Honors Moon Walker Neil Armstrong Obama Voices Concern About Casualties in Mideast Diplomacy Intensifies Amid Mounting Gaza Toll AP Exclusive: American Beaten in Israel Speaks Obama Protects Gay, Transgender Workers Raw: Gaza Rescuers Search Rubble for Survivors Raw: International Team Inspects MH17 Bodies Raw: 25 Family Members Killed in Gaza Airstrike US Teen Beaten in Mideast Talks About Ordeal 'Weird Al' Is Wowed by Album's Success
Comments Tracker