I’ve never liked gold—but I do now: Trader

Gold is gaining the favour of some long-time skeptics.

The precious metal has outperformed other major asset classes this year, rising 12 percent in 2016. Gold has become increasingly useful to investors as stocks around the world have fallen, said options trader Dennis Davitt of Harvest Volatility Advisors.

“If you’re worried about your equity portfolio going lower, you buy gold as a hedge. If you did that January 1st this year, it’s worked wonderfully,” he said Tuesday on CNBC’s “Power Lunch.”

Watch the interview with Davitt.