Just as concerns about inflation, Euro sovereign debt and credit bubbles resurfaces, never having really gone away, Cazenove Capital's technical strategist Robin Griffiths told CNBC that gold will 'go exponential' as the world's paper currency is 'printed into oblivion'. That made not holding goldÂ 'a form of insanity' as far as he was concerned.
Robin Griffiths, a very highly respected strategist in global terms also said that not investing in gold "may even show unhealthy masochistic tendencies, which might need medical attention".
Although gold has fallen slightly from its all time high last month of $1,432 an ounce it is still trading today at about $1,375. But Mr Griffiths said that "The downward trend in the dollar is awesomely powerful. … It's vital to get yourself out of the dollar long-term on any significant rally. Continuing to own a currency that is going to be printed virtually into oblivion – that's the official policy – is crazy." Note the term 'official policy'.
He added that people should be getting out of paper money and into gold and other commodities.
With the Telegraph reporting a Deutsche Bank analyst as saying that gold would have to get to $2,000 an ounce for it to be considered a bubble there could be a lot of scope for investment here.
But International Business Times points out that silver 'is even stronger and has risen against all fiat currencies today' and goes on to say that Sprott Management have warned about the disconnect between the silver physical and COMEX / futures paper markets.
With the supply of physical silver already coming under pressure one wonders how long the lid will stay on the price of the metal.
As an investor or someone interested in preserving your wealth are you in gold and / or silver yet?