Gold News

Gold Investment is 'heads you win, tails you win'

The head of Schroders Bank today (June 5th) predicted that all the factors required for a major bull run in gold are now in place, the Daily Telegraph reports.

Investors tend to Buy Gold when the dollar is suffering as it has historically shared an inverse relationship with the greenback, meaning the yellow metal is also bought as a hedge against inflation.

Now Rupert Robinson, chief executive officer at the bank, has described investing in Gold Bullion as a "heads you win, tails you win" scenario.

He told the newspaper: "The dollar is beginning to wobble, US treasuries are under pressure on fears of downgrades and mounting deficits, and inflation is set to rise.

"Regardless of your outlook for the economy, gold is a great each-way bet. It is an investment that works as well in an inflationary environment as a deflationary one."

Those comments were strongly corroborated last week by Graham Summers, senior market strategist at OmniSans Research, who predicted a "seismic shift" higher for gold prices in the coming months.

"With the Feds running the printing presses and inflationary concerns hitting the market, the dollar's rise may have come to an end," he wrote on MarketOracle.co.uk.

"If the dollar breaks below 79 [on the Dollar Index] in a meaningful way, it's 'look out below' time. Which should put gold above $1,000 in a sustainable way."

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