Enter multiple symbols separated by commas

Gold Has 'Very Little Intrinsic Value' : Analyst

The Securities and Exchange Commission will consider at its Wednesday meeting the restoration of the "uptick rule," which allows short sales -- a bet that a stock's price will fall -- only when the last sale price was higher than the previous price.

Joe Magyer, senior analyst at The Motley Fool, doesn't think reinstating this rule is going is to help markets much.

(For the full Joe Magyer interview, please click on the left)

"I think people are kidding themselves if they think this bear market has anything to do with evil, wily, short sellers. Stocks are down because fundamentals are off, a lot of businesses are losing money. Could it hurt? I don’t see how repealing it could, but realistically, I don’t think we’re going to look back in five years and say, 'wow, it was that change in the uptick rule that saved us all from this disaster', Magyer tells CNBC.

Magyer also doesn't see gold as a hot prospect.

"I kind of think about gold the same way I think about stamps or art, or baseball cards. It has very little intrinsic value to it – it's basically just a really shiny, malleable metal – unlike say oil, which has a lot of industrial purpose," Magyer said.

"Sure, gold has some (value), but the reality is, most of the value in there is just driven by speculation and fear, unlike oil, natural gas, et cetera, that people actually buy and use for industrial application."

More From CNBC.com

Magyer thinks that the direction of gold is entirely driven by speculation and fear.

"Could gold spike on inflation? I would say that it could. But then again, there are certainly other commodities, like oil, which people could trade in, which should also do well if the dollar plummets, and has a lot more application," Magyer concludes.

Contact Asia News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Asia Video

  • European sharing economy can grow rapidly: ING

    Ian Bright, senior economist at ING, discusses the findings of ING's latest survey which revealed that the sharing economy is poised for rapid growth in Europe.

  • What a 'Yes' vote means for Greece

    Richard Champion, deputy CIO at Canaccord Genuity Wealth Management, says Greece will see further instability in the short to medium term if the "Yes" camp wins Sunday's referendum.

  • A 'No' vote doesn't mean a 'Grexit': StanChart

    Manpreet Gill, senior investment strategist at Standard Chartered, says a "No" vote in Sunday's referendum will give Prime Minister Alexis Tsipras more bargaining power, but it doesn't necessarily means a "Grexit."