Further quantitative easing to encourage Gold Investments?
Policies being pursued by central banks from the US, UK, Switzerland and Europe could lead to long-term rises in Gold Prices, one expert believes.
These organisations have pursued a path of interest rate reductions and quantitative easing in a bid to curb deflation, but such actions are likely to bring about currency devaluation, Richard Lockwood believes.
The founder of New City Investment Managers, a UK-based specialist fund management services provider, told Hedge Week this fall in the value of currencies will be reflected in higher Gold Prices.
"All this printing of money will eventually lead to a debasement of currency, this is definitely bullish for gold," he said.
The sentiment was echoed recently by Kishori Krishnan, who wrote on Gold Investing News that the US public deficit is looking much worse than many had imagined, adding that "gold outperforms in a crisis".
"As long as the US monetary and fiscal policies remain debt-based, all the signs herald that golds bull run is just around the corner," the financial expert added.
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