Gold News

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, 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."

Want to Buy Gold but unsure how to do it? For dealing spreads of $3 per ounce – plus secure, professional storage in Zurich, Switzerland for just 0.12% per year – click through to BullionVault now...


See all articles by Gold Bug here.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn



Market Fundamentals