Gold Price "can double" says fund manager

 

A leading fund manager believes the Gold Price could double in the next five years.

Frank Holmes, chief executive of US Global Investors, a commodities, emerging markets and infrastructure fund with $3 billion in assets, has said both gold and oil could see significant price moves as a result of loose monetary policy.

"In the next five years, oil can double and I think gold can double because 50 percent of the world's population is growing their money supply by more than 15% a year," said Holmes

Inflation fears continue to support the Gold Price, with one trader reporting good demand for Gold Coins.

"There is no question that the inflation factor is supporting gold," said Bruce Dunn , vice president of precious metals dealer Auramet Trading . "Both gold and silver are benefiting from speculative buying and good demand from physical bars and coins."

Jan Hatzius, chief US economist at Goldman Sachs, issued a note last Friday which predicted the US Federal Reserve will delay taking action to curb inflation.

"Fed officials will be slower to hike the [Fed] funds rate than suggested by the recent flurry of hawkish Fed talk," said the Goldman forecast.

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