Posted on August 04, 2011
The rising gold price is not a bubble that will burst anytime soon, Mercer Investment Consulting executive director Louis Boulanger says. He was addressing a function at the Gordon Institute of Business Science on Tuesday. The gold price recently soared to a fresh high of US $632.72/oz. Gold was rising on the back of declining currencies, Boulanger said. "When the gold price goes up, it says that something is profoundly wrong with the monetary system." Until there was "monetary reform", people would continue looking at gold as an alternative. He said the truth about gold was that most people simply did not own it yet. Figures he gave showed that last year, central banks' gold holdings totalled $1.5-trillion (R10-trillion). A further $1.5-trillion in gold holdings was privately held, while $200-trillion (R1 346-trillion) was world financial assets.
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