Gold Prices 'still well below inflation-adjusted level'
A respected gold expert suggested today (October 19th) that Gold Prices still have scope to move considerably higher, Bloomberg reports.
The yellow metal hit a then-record $873 per ounce in 1980 and has enjoyed a similarly stellar 2009, increasing by 19 per cent to a new record of $1,070 last week.
However, Martin Murenbeeld, chief economist at Dundee Wealth - which manages $58.5 million in mutual funds and brokerage accounts - explained that gold can make further gains as the 1980 inflation-adjusted price would be $2,287 per ounce.
"Gold is not at any peak. The world's money supply has increased and gold hasn't kept pace. We're now in a period where gold is catching up," he told the news provider.
Those comments were strongly backed up last week by Peter Fertig, who is the owner of Quantitative Commodity Research in Hainburg, Germany.
Speaking to Bloomberg, he explained that the ongoing struggles of the dollar and growing fears over the possibility of inflation will keep Gold Investment volumes strong.
"There's lots of concern about the weakness in the dollar and this has been driving gold," he told the news provider.
"The fear that central bank exit strategies will come too late to prevent inflation is giving support to gold."
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