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Sources close to analysts at “Sun Worldwide” say that paper-based currencies are set to devalue further as governments continue loose monetary and fiscal policy.
One of the sources close to the Asian-based boutique brokerage suggested that the sharp rally in the price of gold is primarily due to the continuation of the low interest rate policy being maintained by the central banks of the world's most developed economies.
“Sun Worldwide” has made no secret of its bullishness on gold as the ultimate preserver of wealth and are confident that given time, the precious metal will be regarded as a currency in its own right.
The US dollar has fallen sharply since the Reserve Bank of Australia raised its benchmark interest rate by .25 basis points thereby becoming the first to begin withdrawing the stimulus that has hallmarked Western response to the debilitating global economic slowdown.
“Sun Worldwide” believes that sterling is set to suffer acutely in light of further evidence suggesting that recovery within Europe's second-largest economy is likely to be more subdued than originally thought.
Investors are flooded to gold as concerns mount that the US Federal Reserve's intention to withdraw its treasury buyback program will adversely affect the ability of bonds to preserve purchasing power in the months and years going forward. As a result, gold has enjoyed a resurgence in popularity amongst both private and institutional investors.
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