Worldwide Financial sunworldwide (gold Set To Surge)
http://www.sunworldwide.com, the Asia-based investment broker
, has restated its opinion that precious metals represent a superior safe-haven to investors than bonds despite the rising yields that have previously made them more attractive to those wishing to protect their wealth against devaluation or inflation.
Investor jitters have been magnified in recent weeks as the Greek debt crisis has developed and the Federal Reserves decision to cease its quantitative easing program and stop buying treasuries has forced bond buyers to demand higher yields for the perceived increased risk of holding sovereign debt.
Gold, which is not exposed to counterparty risk, has remained resilient in spite of efforts by short sellers to force the price down and buyers are providing support at $1080.00.
SunWorldwide analysts believe that the metal will resume its surge towards $1300 in the weeks and months ahead.
SunWorldwide is also keen to remind clients that they should avoid focusing on the price of the metal in terms of US dollars given golds performance against all paper-based fiat currencies like the euro and sterling. Both of these currencies have fallen sharply against gold in recent months and it is more than likely that the dollar will follow suit as investors realize that the greenback is no longer a true safe-haven.
SunWorldwide advises clients looking for a more exciting play on the bull market in precious metals would do well to consider spreading their allocation between gold and silver which has performed admirably against the dollar in the last 15 months.