For many investors, gold continues to be an anomalous asset because it generates no cash flow, pays no dividends, and is difficult to value using traditional models. However, according to Jeff Sarti, CEO of Morton Wealth, this is precisely the point of gold.
"Gold is not an investment—it is savings. Over the long term, gold functions as a store of value," Sarti stated in an interview with Kitco News.
Sarti's firm has maintained a position in gold since 2015. Although the parabolic rise in gold prices earlier this year generated significant excitement in the market, he noted that the move actually made him nervous. He explained that gold's true role is widely misunderstood, even as its long-term investment rationale strengthens.
In Sarti's view, gold's core function is as the ultimate store of value, having withstood the test of every fiat currency system in history. "Reserve currencies come and go, but gold has proven it can fulfill this role across generations," he said.
While many fund managers avoid gold because, as a non-yielding asset, it is hard to value, Sarti believes these concerns are overcomplicated. He added that he views gold as a hedge against rising debt and currency devaluation.
"By definition, a store of value should be boring. I want gold at $2,500, not $10,000—because $10,000 would mean something has gone very wrong," he remarked.
This perspective contrasts with the speculative narratives driving recent market momentum. Although Sarti acknowledged there has been "speculative frenzy" over the past year, he said such activity is common in any asset cycle and does not undermine gold's long-term role.
Sarti indicated that over the past decade, his firm has maintained a "high single-digit" exposure to precious metals, with roughly 5% to 6% allocated to physical gold and an additional 2% to 3% in mining stocks.
The firm does not attempt to time the market, instead adhering to a strict rebalancing strategy. He added that during gold's rally to record highs in January, the firm took profits on part of its position.
Mining stocks are seen as a more tactical extension of gold exposure due to their higher volatility and sensitivity to input costs such as energy.
Looking beyond short-term fluctuations, Sarti said his long-term bullish outlook on gold stems from structural concerns about government debt and monetary policy. "By any economic formula, we are already bankrupt. The only reason we aren't is because we have a printing press," he stated.
He suggested that the most likely path forward for policymakers is continued currency debasement accompanied by financial repression, including potential yield curve control. Sarti added that it is not just the U.S. facing unsustainable debt levels; given all the economic uncertainty, it is nearly impossible for countries to grow their way out of debt.
Once inflationary policies are implemented, he explained, it would mark "crossing the Rubicon" and could justify increasing gold allocations further.
In this environment, Sarti believes gold remains underallocated, particularly among institutional investors. Citing estimates, he noted that global portfolios have less than 0.2% exposure to gold, adding, "Almost no one owns gold."
This lack of participation suggests the current rally may still be in its early stages, driven more by macroeconomic fundamentals than widespread speculative overheating. "I don't think the general public has even started talking about these issues yet," he said.
For Sarti, the true signal of a peak will be cultural, not technical. "When gold becomes a mainstream topic—when you see it in Super Bowl ads—that's when I'll start to worry," he commented.
In the meantime, Sarti emphasized that gold is only one part of a broader strategy centered on physical assets and non-correlated investments.
Amid rising debt, persistent inflation risks, and potential stagflation, Sarti expects investors to increasingly favor tangible assets over financial ones. This shift, he said, could define the next phase of the gold market—where gold is no longer a speculative trade, but a foundational component of portfolio resilience.
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