Gold News

Investing in Gold wise as commodities 'will boom again'

A prominent hedge fund manager has claimed today (April 21st) that commodities could be in line for a major boom in the next 18 months, Forbes reports.

Stephen Roseman, head of the Thesis Capital fund, has explained that he is expecting a period of inflation to ensue after markets emerge from the "deflationary blip" being experienced at present.

His comments will come as a major boost to anyone with a Gold Investment, as an inflationary environment pushes the yellow metal higher because it tends to move in the opposite direction to the dollar.

"Most businesses operate better with a modicum of inflation but there is a real potential for us to overshoot inflation limits on the upside," Mr. Roseman told the news provider.

"In that environment investing becomes trickier. Long gold is most investors' go-to when faced with inflation."

That view was also expressed last week by Nick Goodwin, a gold analyst from precious metals research firm GFMS, who sounded an even more optimistic note for Gold Investment.

He explained that in the previous gold bull run in the late 1970s and early 1980s there was a sharp rise towards the end, a situation which could be repeated in the future.

"In the last stages of that bull market you get very strong acceleration in the price and we haven't really seen that here, where you almost get like a vertical climb and it started in sort of late '79 and then moved into '80 and in those last few months you had almost like a doubling in the gold price," he told Mineweb.

"Well we haven't seen that yet. I think we could still see that coming."

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