THE PRICE OF gold and silver are “not a bubble”, but government debt is, says a senior bank analyst in Germany.
“Gold is not in a bubble, silver is not in a bubble,” says Folker Hellmeyer, chief analyst at Northern Germany's Bremer Landesbank, speaking to MMNews.de in an interview translated for SmartKnowledgeU.
“If there is a bubble, it's in Triple A-rated government debt, whether from Germany or the United States.”
Calling the reasons for the bull market in precious metals such as gold and Silver Bullion “very simple”, Hellmeyer – whose bank is 92% owned by Nord LB, one of the country's very largest commercial banks – identifies three key factors.
Debasement of the US Dollar is the most important driver of the Gold Price rise, plus rapidly growing wealth in emerging-market economies, and “smart central banks” Buying Gold rather than yet more debt from the United States.
“That means we have a strong demand growth with an inflexible supply. Those are the drivers of the Gold Price.”
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