The news feeds on this site are independently provided by Adfero Limited © and do not represent the views or opinions of the World Gold Council.

Thursday, 9th July 2009 (1611 views)

Investing in gold and gold-related stocks will remain one of the best ways to protect money from the prospect of severe inflation in the US, a Wall Street analyst has said.

Peter Schiff, president of broker-dealer Euro Pacific Capital, warned of the October 2008 market crash and ensuing recession as early as 2006, Business News Wire noted.

In an interview with the service, he said there is now a danger that the US government's decision to pay for its bank bailout and economic stimulus packages by printing money through the Federal Reserve could "debase" the dollar and trigger severe inflationary pressures.

Gold provides a safe haven from these pressures and will remain the definitive store of value as the market moves away from the dollar, he predicted.

Mr Schiff said the gold mining sector could also be a "standout" area for growth in the coming years as demand for the yellow metal surges across the globe.

"As millions or billions of people discover gold as a store of value and as a way to escape inflation, there's going to be tremendous demand and somebody's going to have to supply that demand," he commented.

Euro Pacific Capital, which specialises in trading international securities, was founded in 1980.

 

« Back to Gold News stories