Golden Days Ahead: Dave Kranzler
June 6, 2012 by metalinvestmentnews
SOURCE: [The Gold Report] – Savvy investors and central banks in Asia are accumulating physical gold, the most stable form of value. In an exclusive interview with The Gold Report, Dave Kranzler, founder of Golden Returns Capital, contrarian gold investor and newsletter writer, shares his investment outlook and explains what he looks for when investing in gold miners poised to profit from economic turbulence.
The Gold Report: You started your career, Dave, in the fixed income securities division of Goldman Sachs. And you worked as a junk bond trader before founding Golden Returns Capital. What prompted you to move into precious metals?
Dave Kranzler: After working as a bond trader on Wall Street, I was day trading. A friend suggested that I look at gold and silver. I initially poo-pooed that idea, as I was more interested in shorting technology stocks during the Internet bubble. I thought the tech valuations were based on nothing more than hopes and dreams, not on real wealth. The enormous growth in paper investments was driven by the incredible amount of money supply thrown into the system by Alan Greenspan’s Federal Reserve.
But in late 2001, my friend finally convinced me to get serious about mining stocks. So I investigated the reasons why there had been a 20-year bear market in precious metals and why a long-term bull market was in the offing.
TGR: Why should we invest in gold instead of, say, Facebook?
DK: People like Warren Buffett, Charlie Munger and Bill Gates characterize gold as an investment. It’s really not. It’s a monetary metal. Gold represents the embodiment of real wealth.