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From Precy Dumlao, Opalesque Asia:

The commodities space offers great opportunities in the near- and long- term with gold and agriculture providing much of the boost, thus said Coast Sullinger, Founder and Managing Partner at GAIA Capital Advisors, at the latest at Opalesque Geneva Roundtable. Geneva-based GAIA Capital is a natural resource and agriculture- focused fund with $100m in AuM. During the discussion, which covered topics on the financial markets and the hedge fund industry, Sullinger explained how the weakening US dollar, the Euro, as well as perceived increase in gold reserves by other economies (including China) would drive up prices of gold.

"There is a huge ballooning of the balance sheet in the United States with the debt-to-GDP ratio, which if you include all private debt and pension expenses is well over 300% of the GDP. Of course, Europe is also having these same issues. As a result traditional paper currencies like the Dollar and the Euro will probably continue to weaken. Gold is reflecting this trend. Robert Zoellick, former World Bank Chairman, recently wrote in an article that gold should come back as a reference currency. The Chinese have $3bn worth of reserves in gold, which is still less than 3% of reserves when compared to many other markets, which have between 40% and 60% of their reserves in gold," the GAIA ......................

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