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Gold Prices may be boosted by 'dollar collapse'

Calyon analyst Robin Bhar claimed yesterday (May 28th) that a "collapse" of the US dollar could be imminent, much to the benefit of anyone with a Gold Investment.

The greenback hit its lowest levels of the year so far last Friday and could plunge even further as a result of the huge fiscal deficit accrued in response to the economic downturn.

Mr. Bhar believes that this trend will continue in the coming months, which could see Gold Prices increase as they have historically moved in the opposite direction to the dollar.

He told Reuters: "People are fearful again that we could be facing a dollar collapse, which would have severe ramifications across the board.

"All the factors that people have been warning about for several months now seem to be coming to the fore."

Those comments come after Aram Shishmanian, chief executive officer at the World Gold Council, noted last week that gold's appeal as a store of wealth is continuing to attract investors.

"There has been a seismic shift away from capital appreciation towards wealth preservation and we believe this trend will define investment behaviour in the next decade," he told MiningMX.

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