Gold is punching out its umpteenth high for the year on Tuesday, and our call of the day, from Praetorian Capital Management founder Harris Kupperman, offers a fresh way to profit from that.
Kupperman, who expects rising domestic and global tensions to drive volatility this year, is less excited by gold itself. “Capital flees and effectively goes to sleep in the form of precious metals — until stability returns, and capital can be returned to the economy again,” says the hedge-fund manager in a blog post.
He isn’t a fan of miners, as he sees little leverage to the hard asset — one view is that when gold prices rise, profits for mining companies also climb.
Kupperman, who correctly called the 2022 tech meltdown, is focused gold’s role as a gauge of global fear levels. “I want to play the fear — the visceral and instinctual panic into metals and out of paper. I think that’s the better trade—especially as the elites find ways to cap the price of gold, or at least divert people’s attention from it…”
