Gold has rallied this week leading to a lot of speculation that the bottom may have been reached. CNBC’s Jim Cramer has been telling people to buy physical gold as insurance against inflation and a struggling U.S. Dollar for weeks now and it seems he may have been on to something. As gold prices dropped and U.S. investors were selling, the Asian and Indian markets continued to buy, signaling a continuing global demand.
This week Oppenheimer, Deutsche Bank, and other experts have all issued statements saying that the decline may be over. Oppenheimer’s Carter Worth, who said back in April that the gold market was due for a correction, now has appeared on CNBC to say that the bottom has been reached. Deutsche Bank’s strategists were a bit more cautious, stating that the Federal Reserve’s policies could slow gold’s growth, while admitting that the decline is most likely over.
In an interview with King World News 1, Egon von Greyerz of Matterhorn Asset Management out of Switzerland is bullish on gold, but bearish on the state of the global economy. He sees the U.S. continuing to print money in order to keep up with other world governments in turn devaluing the U.S. Dollar leading to inflation. This outlook seems to be shared by most experts, making physical gold an even stronger hedge than ever.
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