Gold News

Gold Investment prudent as 'inflation is set to spike'

Gold Investment could be set to rise after a senior fund manager predicted a major spike in inflation over the next few years, the Journal Sentinel reported on Saturday (April 5th).

The yellow metal is a popular alternative investment to paper currencies as it provides a hedge against inflation and store of wealth in the current troubled financial landscape.

Mark R Zellmer, president and portfolio manager at Milwaukee-based Northern Oak Capital Management, has explained that the amount of money being printed by central governments will ultimately benefit anyone Investing in Gold.

He told the newspaper: "If you have any monetarist blood in your veins, if you believe inflation is driven by changes in the money supply, the absolute level of the creation of dollars has to catch your attention."

That view was also expressed recently by Steve Shepherd, an analyst at JP Morgan, who suggested that a decrease in gold production and central bank sales indicate that prices look set to rise for some time to come.

"We expect increased investment demand to make up for any losses from traditional jewelry markets in India, China and the Middle East to underpin gold prices," he told the FP Trading Desk.

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