A: We have maintained a bullish view on gold for the past several years. Our view, however, is not predicated on the belief of looming hyperinflation which is a popular view by gold bulls. But rather on the fundamentals of rising demand for gold as a storage of value whether by central banks, investment demand (i.e. ETFs, speculators etc), or private investors. The latter is driven by the desire to diversify in light of two equity bubbles in one decade, coupled with a housing crash. Gold retains its value in any market and it's one commodity where the supply is controlled.
Kimberly DuBord
Director of Research