Top fund manager Markus Bachmann has claimed today (December 16th) that gold investment is a shrewd strategy in the wake of recent financial turmoil around the globe, Reuters reports.
Some commentators believe that the record US budget deficit of $455 billion for the year to September 30th could be doubled this fiscal year in light of the $700 billion rescue package for banks.
Now Mr. Bachmann, who manages the Craton Capital Precious Metal Fund, has explained that investing in gold will reap huge benefits when that debt begins to unwind.
He told the news provider: "The monetary expansion that took place in October and November was absolutely unprecedented.
"You can't go wrong by holding physical gold. You don't need to be a gold bug or a grave dancer. If you don't know what the world is going to look like in the future then buy gold."
Mr. Bachmann's comments come after two analysts at JP Morgan, the largest bank in the US by asset size, urged people to buy gold over the festive period as they expect prices to rise at the turn of the year.
John Bridges and Steve Shepard wrote in a report: "The tighter gold supplies and counterparty risk could give gold (and thus directly the equities) a lift through year end."
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