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Aaron Smith, managing director at Superfund Financial, sees gold as a good bet as he believes it will rise to $1000 an ounce by year-end, and $1500 in two to three years' time.
"We think the prognosis is quite bearish for stocks and actually if you are buying stocks long-only at this point it's in my view sort of a sophisticated form of gambling," Smith told CNBC. "But there's no reason to be too too nervous. Investors could take advantage of cheap prices in commodity markets and benefit substantially from that in the next two to three years."
(See his full comments in the video)
"If you have to buy stocks it's better to have commodity stocks than financial stocks. But we believe we're shifting to an era of real assets where real assets will be valued more than paper assets like stocks and bonds. So we want to have exposure to the real underlying commodity. The best one that investors can buy in this kind of market environment today is gold."
Part of gold's appeal is because "there is tremendous downside potential in the U.S. dollar." Investors could take advantage of the dollar's recent rally to take a position in gold, he suggested.
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