Investors will Buy Gold over 'inflationary spiral' fears
The head of Equidex claimed today (July 9th) that he can envisage Gold Investment rising in the coming months over fears about inflation, Bloomberg reports.
Investors tend to buy the yellow metal when they believe inflationary pressures are rising as its inverse relationship with the dollar makes it a valuable hedge against currency devaluation.
With central governments continuing to print money to tackle the global financial crisis, Philip Gotthelf, president of the New Jersey-based brokerage group, explained that Gold Prices could benefit.
"Those who believe that the printing presses of the governments are going to eventually lead to an out of control inflationary spiral are going to want to accumulate gold," he said in an interview with the news provider.
Although gold has traditionally endured something of a summer lull, Chris Dickens from introducing brokerage firm Empower Investments revealed that such a scenario this year offers a huge buying opportunity.
Writing on seekingalpha.com, he explained that he expects gold to enjoy a strong end to the year.
"If the Fed continues its current stance on inflation, and barring any unforeseen geopolitical events, I believe that the historical pattern should continue," he wrote on the website.
"October, November and December are traditionally very kind to gold and I expect this year to be no different."
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