Gold News

US government attempts to suppress Gold Prices 'will fail'

The general manager of a Michigan-based precious metals dealer claimed today (June 10th) that Gold Prices could be on the verge of a major move upwards.

Writing on NumisMaster.com, Patrick Heller from Liberty Coin Service suggests that the US government has been desperately attempting to stem the rise of the yellow metal.

He notes that the International Monetary Fund (IMF) believes that almost 70 percent of the world's currency reserves are held in the dollar, which moves in the opposite direction to gold.

However, Mr. Heller also alludes to IMF first deputy managing director John Lipsky's claim at last week's St Petersburg International Economic Forum that a "revolutionary" new global reserve currency could be created to replace the greenback.

He describes this news as a "bombshell" and explains that it would inevitably lead to major dollar devaluation and inflation, all of which would benefit anyone with a Gold Investment.

"Over the past two weeks, the US government's trading partners have lost several skirmishes trying to suppress the spot price of gold," he wrote.

"Any threat to the US dollar as the world's reserve currency would cripple the value of the dollar and lead to higher gold and silver prices. To me, it is a question of when, not if, that the prices of gold and silver will jump far higher than current levels."

Mr. Heller's comments were also touched on last week by Patrick Holmes, CEO and chief investment officer for US Global Investors.

He explained that the dollar currently has artificial strength as a result of major hedge-fund borrowing in the currency but that gold prices will hit $1,300 per ounce when this de-leveraging comes to an end.

"There will be a point when this de-leveraging stops and I believe that would be a big, significant factor to the dollar declining and the price of gold holding at price levels or even rising to $1,200 or $1,300 an ounce," he said in special webcast quoted by usfunds.com.

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