Gold Prices could rise due to US fiscal troubles, says expert
Gold Prices could increase over the coming years if US "fiscal deterioration" continues, it has been suggested.
That is according to Larry Jeddeloh, founder and chief investment officer of Minnesota-based TIS Group, which acts as sub-advisor for the Omega Global Opportunities Fund, who said that a struggling US dollar will increase Gold Investment opportunities, according to the Financial Post.
He said that he had expected the collapse of the US dollar to plateau, but revealed the currency was still in bad shape and believed a "big money print" was imminent.
Mr Jeddeloh told the news provider: "They might have to go back and actually start reflating again, well before anybody thought.
"When the market gets a hold of that, then I think the U.S. dollar starts down again and you get commodity prices across the board, including gold, starting to run."
Mr Jeddeloh's assertions are backed up by comments made by fellow industry analyst Sam Kirtley, chief executive officer of SK Options Trading, who said that Investing in Gold in 2010 could be a shrewd business move.
He said: "By far, the metal we are most bullish on this year is gold, as we see continuing weakness in the U.S. dollar driving the yellow metal to new all-time highs, probably in the first quarter of this year," reports MarketWatch.
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