A leading gold fund manager has claimed today (February 4th) that gold prices will hit an all-time high this year as the deteriorating financial climate leads to "explosive" inflation, Bloomberg reports.
The yellow metal is currently trading close to the $900 per ounce mark, not far short of its record high of $1,030 per ounce, which was reached last March as fears over the state of the economy grew.
Now Joe Foster, who is part of the team which manages $8 billion in gold and other assets at New York-based firm Van Eck Associates, has explained that a dire shortage of commodities will boost gold in 2009.
He told the news provider: "Then you layer on top of that all the liquidity, the printing of money and the other measures the government is taking.
"Once the velocity of that money starts to pick up in a more positive environment, it could create an explosive situation."
In line with Mr. Foster's predictions, Shuji Sugata, a research manager at Mitsubishi, claimed last week that there is a growing trend towards gold investment as people seek a store of wealth.
"Concerns about widening losses in financial institutions enhanced the value of gold as a safe haven. Investment demand for gold is rising," he told Bloomberg.
Investing in Gold? For the cheapest, fastest & most secure route to solid Gold Investment simply register for a free, no-obligation account at BullionVault now...