Bright Future Predicted For Gold and Investors

August 30, 2012 - by buygold.co.uk · Filed Under Gold News Leave a Comment

Gold has not been on the profitable end of the market in recent times and bullion investors were very withdrawn in terms of the volume of gold traded. In the past few years, gold was one of the safest commodities to invest in and was always a safe house for the investors. But recently, things were not looking too bright for the yellow metal. However, some high profile experts are of the opinion that gold is about to turn the tide and will show significant improvements in the near future.

Dollar Erosion to Boost Gold Value

Some of the experts have been surprisingly doubling on gold purchase and these people include George Soros and John Paulson, the hedge fund managers of Pacific Investment Management Co. A few other bullion investors are also extensively announcing bullish forecasts for gold. They cited their reasons that the continuation of bad times in the Euro zone will have a positive bearing on gold.

They also stated that the United States will have to increase the monetary stimulus which will cause the value of dollar to fall. They said that this drop in the USD value will bolster the bullion market and will trigger the long dormant Bull Run that gold had witnessed in the past few years.

Gold Responds with a Bull

As a response to this statement from the bullion investors, Gold witnessed a rise of 1% in the electronic trading market. The Federal Reserve played host to a meeting of all the central bankers, where they met to discuss the new policies that should be adopted. The rumors were that most of the bankers were inclined towards providing quantitative easing. This is good news indeed for bullion investors and it is in line with the predictions of the investors.

Pacific Investment Management Increase Bullion Holdings

Pacific Investment Management, the largest bond-fund manager, has increased the amount of gold it is holding to 11.5% from the 10.5% it was holding a couple of months ago. This was done as insurance and in anticipation to the expected rise in the gold prices that can start as early as the beginning of next year.

Be Sociable, Share!