Gold News

Gold Investing Bull Market "Will Continue in 2011"

The DECADE-LONG RUN in global Gold Prices will continue in 2011 says a leading economics consultancy, fueled by the threat of inflation and weak monetary policy worldwide.

"It may be several years before developed-world real interest rates [above inflation] return to the norms of earlier decades, especially in the US," says independent Canadian research group the Bank Credit Analyst.

"In this environment," says BCA – citing sub-zero real rates of interest as a major factor behind Gold Investing in recent years – "gold will continue to be an excellent insurance policy and should continue to fare well when measured against the major currencies".

The price of physical Gold Bullion has risen by an average of 16% per year since 2001 vs. the US Dollar. It accelerated to a 38% gain vs. the European single-currency Euro in 2010.

Large government deficits also have "potential inflationary implications" says BCA, and to avoid worsening the situation "Central banks are prepared to stop at nothing to prevent deflation."

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