Gold News

Gold Prices to be buoyed by the 'inflation aspect'

Marshal Berol of the Encompass Fund has claimed today (August 26th) that Gold Prices will be boosted in the future by the emergence of inflation.

The yellow metal has traditionally shared an inverse relationship with the dollar, which means it is often bought as a hedge against the currency in an inflationary environment.

Now Mr. Berol, whose fund has a 9.63 percent equity position in Seabridge Gold - which is involved in nine North American gold projects - has explained that the economic crisis means the future looks bright for anyone with a Gold Investment.

"There are a lot of reasons we believe that the demand for resources will continue to expand. It's supply-demand in the case of gold," he said in an interview with the Gold Report.

"It's the storehouse of value. There's the inflation aspect. We're not of the camp that thinks deflation is here to stay, or that there's not going to be some decent growth globally."

Those comments come after Tom Pawlicki, a precious metals analyst at MF Global, revealed last week that he can also see the yellow metal rising in the future.

He explained in an interview with Reuters that the current meandering between $920 per ounce and $970 per ounce could eventually be broken when bargain-hunters get their teeth stuck into gold.

"With gold prices trading near the lower end of July's trading range, the metal could rally on better risk appetite and bargain-hunting," he told the news provider.

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