A senior US finance figure claimed on Saturday (January 10th) that gold prices are set for a major surge towards the end of 2009, the Herald Sun reports.
Peter Schiff, a respected commentator and president of Connecticut-based brokerage firm Euro Pacific Capital, was one of a limited number of economists to predict the current credit crisis.
Now he has given the green light to anyone contemplating investing in gold by explaining that the recent mini-rally in the dollar was peculiar and will be strongly reversed in the coming months.
Describing gold as a "safe haven", he also told the news provider: "A lot of people are seeking safety right now in the US dollar, but that makes no sense to me. That's like jumping out of the frying pan into the fire.
"I think the dollar is a fundamentally flawed currency that is doomed to collapse and temporarily it's benefiting from the fact it's seen as the alternative to everything else."
Mr. Schiff's view is one that is shared by major Asian investment group Eastern Financiers, which claimed last week that gold prices will rise by 20 to 25 percent in 2009.
In a new report on the gold industry, it suggested that a "significant portion" of the current US Treasury bills will be ploughed back into investment in the yellow metal.
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