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Projected inflation likely to increase demand for Gold Investment

The massive growth in national debt levels across the western world is creating a scenario that will likely see high levels of inflation in the long-term.

That is according to Hong Kong financial expert Puru Saxana, which warns that the US national debt has increased over the past decade more than it did in the previous 100 years.

A result of increased public borrowing is likely to be the need for more money to be printed and, subsequently, growing demand for gold as a hedge against devalued currency, the wealth manager suggested.

It wrote: "If our world-view is correct, extremely high inflation is now inevitable. When that occurs, hard assets will protect the purchasing power of your savings."

Puru Saxana also suggested that hard assets, such as gold, are in a secular bull market expected to last for the majority of this next decade.

Indian fund Religare Asset Management believes that Gold Prices could rise by 15 per cent annually over the next three-to-four years as a hedge against inflation and weak paper currency, Bloomberg reports.

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