|
The world’s oldest and most durable form of currency, gold, is soon expected to surge past
$US1,000 an ounce as countries in deficit continue to spend to buoy economic
sustainability, according to the head of managed futures funds provider SuperAlphaFund
Australia.
Matthias Gaertner points to the phenomenal rate at which the US Federal Reserve and
European Central Bank, and as it appears, Australia, are injecting dollars and euros to prop
up their stricken banks and credit afflicted economies.
He predicts that gold is likely to reach upwards of $US1,500 an ounce mid-term as investors
turn to gold in order to preserve and protect wealth against major currency devaluations
which may potentially trigger hyperinflation in many parts of the world.
“When governments step in to stabilise institutional lending and manufacturing in a
contracting economy, without increasing taxes or interest rates, much of the capital simply
ends up being printed, causing currency depreciation,” Mr Gaertner said.
He said the precious metal’s growing value was not surprising given it is the only globally
recognised currency limited in supply and not backed by debt.
“Since the US abandoned the ‘gold standard’ currency system in 1971, under which the
dollar was pegged to gold, the greenback’s purchasing power has dropped more than 80
per cent.
“Gold on the other hand carries its own intrinsic value making it safer and more inflation
resistant than paper cu...................... To view our full article Click here
|
RSS
