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Stephen From Komfie Manalo, Opalesque Asia:
Precious metals, particularly gold and silver, are expected to benefit from the market instability says Stephen Founder of Leeb Capital Management. But another study represents a conflicting view and the expectations that the price of gold may have peaked and its current price level will stay for a "long, long time."
Speaking to Hardassetinvestor.com (HAI), a research-oriented Web site developed by Van Eck Associates Corporation, Leeb said that recent credit rating downgrade of the U.S. by Standards & Poor’s from AAA to AA+ is an indication that the U.S. dollar "is not a very appropriate reserve currency" which would drive demand for commodities and precious metals.
"That said, I think metals and commodities will continue to be a very good hedge against inflation," Leeb told HAI. He is particularly bullish on the prospect of silver based on two crucial fundamentals. The first is that, historically, silver is a monetary metal. But the most important factor is that 50% of silver’s demand is for its industrial use. Silver is a major component in solar technology and China is expected to buy more silver to push the development of its solar technology program....................... To view our full article Click here
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