The head of Global Investors claimed on Tuesday (March 10th) that he is bullish about Buying Gold as a long-term investment tool, Reuters reports.
Frank Holmes, CEO of the fund manager - which has around $2 billion in assets - suggested that Gold Bullion is "overbought" on a short-term basis and subject to volatility.
However, he explained that he is looking at a positive risk-reward ratio for the yellow metal in the next six months, with $100 of risk on the downside and around $300 on the upside.
Explaining his position, he told the news provider: "Whenever you have negative interest rates, which we have today, and you have continuous deficit spending, gold becomes an attractive asset class."
That viewed was echoed last week by Capital and Markets Research strategist Matein Khalid, who expressed a similarly bullish outlook for gold in the next year.
"Gold has been the winner asset class of the post millennium decade. I believe it is not unrealistic to predict $1,200 an ounce in the next twelve months," he told Zawya.com.
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