Lane made the argument on "Mornings with Maria" on Tuesday ahead of the release of the highly anticipated consumer price index, which provided a fresh look at just how hot inflation ran in March.
"One of the assets that we think is important to consider, frankly, is gold," Lane told host Maria Bartiromo. "Not only gold as an asset, but also the gold streamers and the gold miners."
"There’s 20 times more paper gold out there than there is real, physical reserves of gold in the world," he added.
Lane then clarified what he means when he references "paper gold."
"These are options, these are futures contracts, so there’s a huge multiplier effect out there where existing physical gold has been hypothecated," he continued. "In the event that enough investors were to basically say, ‘I want physical gold, I want the gold delivered,’ we would have a run on gold. It would be incredible."
|GOL||GOL LINHAS AÉREAS INTELIGENTES||2.74||+0.06||+2.24%|
Gold prices held steady on Tuesday ahead of the release of the Labor Department’s inflation data with U.S. gold futures rising 0.4% to $1,956.60, Reuters reported. This year, gold prices have popped amid the conflict overseas.
Analysts have argued that gold's role as an inflation hedge appears to be buoying the metal.
The consumer price index rose 8.5% in March from a year ago, according to the new Labor Department report released Tuesday, marking the fastest increase since January 1982, when inflation hit 8.4%. The CPI – which measures a bevy of goods ranging from gasoline and health care to groceries and rents – jumped 1.2% in the one-month period from January.
"I also think we’ve had such fiat currency debasement globally that I think people are looking at gold as a safe haven," Lane said. "We certainly see it as a safe haven."
"We think the price is depressed frankly because of the impact of paper gold," he continued. "We think that will reverse itself."
Lane added that he doesn’t view gold, particularly gold miners and gold streamers, which he argued is a "much more leveraged way to play gold," as "just defensive assets."
"We see them as offensive assets, similar frankly to technology stocks," he continued.
Lane predicted gold will hit $2,500 an ounce one year from now.
FOX Business’ Megan Henney contributed to this report.