Gold futures hit new records three times this week, as the precious metal outperformed stocks, bonds and commodities. Not to be outdone, silver futures hit its highest level since 1980.
As long as governments continue to print money and bail out companies, gold is a good investment because it is a real currency and will continue to climb, said Victor Sperandeo, president of Alpha Financial Technologies.
Sperandeo cited Japan's intervention this week, where it's central bank said it would try and weaken the yen. He said gold traders trade on leverage, so they jump on these kinds of events with a lot of leverage. When a country like Japan prints money to weaken its currency, he explained, the gold traders buy gold and the shorts get squeezed.
The money manager strictly trades gold futures though. Why trade gold stock, which is taxed at up to 40 percent when you could trade futures with a 24.5 percent tax, he asked.