While the US economy seems to be stabilizing, the price of gold continues to climb. Up to June 23, the price of gold had risen more than 10% since the start of 2010 to about $1,235 an ounce. Fears of a gold bubble remain unfounded, however, according to commodities investors. Jeremy Charlesworth, CIO of fund of funds firm Moonraker Fund Management in London, says investors are still underweight in gold. "When everyone is buying something then that is a bubble, but it’s still not happening."
Charlesworth believes there are increasing fundamentals pointing to a further rise in the price of gold. "People are losing faith in their government’s ability to reduce debt, and are therefore losing faith in the value of money. That will encourage more buying of gold."
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| "People are losing faith in their government’s ability to reduce debt, and are therefore losing faith in the value of money. That will encourage more buying of gold" Jeremy Charlesworth, Moonraker Fund Management |
Frank Holmes, CEO and CIO of US Global Investors, a resource fund management firm in Texas, agrees that a lack of control by governments over their economic policies will drive the gold price further up.
