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Investment Expert Marshall Berol to Moneynews: Gold Prices Will Only Climb Higher Despite Recent Slump

By    |   Friday, 12 April 2013 08:15 AM

Investment expert Marshall Berol says don’t be fooled by the recent downturn in gold prices.

“We see [gold prices] headed longer term on an upward trend as they have been for the past 12 years,” the co-manager of Encompass Fund and the chief investment officer of Malcolm H. Gissen and Associates told Newsmax TV in an exclusive interview.

“Over the last year or so, particularly the last six months, they’ve gone down slightly and [that’s based on] the news of the day, or the headline of the day.”

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He didn’t provide a specific dollar amount when asked how high the precious metal could reach by the end of the summer, or the end of the year.

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“By the end of the year, we would expect that this will be another year where gold will hit a new high for the year as it’s done for the past 12 – not a new all-time high,” he said.

Gold was at $1,560.84 an ounce early Friday but headed for a more than 1 percent decline this week, its third such drop in a row, Reuters reported

Berol cited factors driving gold prices on a day-to-day basis, including Federal Reserve actions, news from Japan and Europe and U.S. unemployment data.

He also outlined specific factors driving up prices on a long-term basis.

“Europe has still got major problems, the economy in the U.S. is growing very modestly, Japan has got a major stimulus plan under way,” Berol said. “All those factors should lead to the price of gold and silver going up over time.”

Supply and demand were cited as underlying factors.

“It’s far more difficult, it’s time consuming [and] far more expensive to find gold and to get it out of the ground these days than it was in the past,” Berol said.

“The demand continues, whether it’s by central banks or by ,,, individuals in the form of coins or bars, bullion, China and India, around the world. The supply-demand factors continue to be favorable for gold to be increasing in price.”

Berol also touted efforts by states to recognize gold and silver coins as legal tender.

“It’s a positive for gold and it shows the concern that people have for paper money, whether it’s dollars or euros or yen or pesos or whatever,” Berol said.

“The dollar’s not going to become worthless overnight, or probably at any time. It’s going to be worth something. It’s just a question of how much will it buy, which is what inflation is. Gold, historically [over] 6,000 years has provided some protection against inflation.”

He also said the Bank of Japan’s stimulus plan will also help boost the price of gold. Earlier this month, the Bank of Japan vowed to inject about $1.4 trillion into the economy in less than two years.

“Japan’s stimulus plan … is proportionately a larger stimulus plan than we’ve had in the U.S.,” he said.

“Japan may be successful in its stimulus plan and in bringing the value of the yen into different proportions with the U.S. dollar or the euro and improve the exports for Japan. But ultimately it’s going to be positive for gold because the yen is a paper currency and it’s going to be worth less.”

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Investment expert Marshall Berol says don t be fooled by the recent downturn in gold prices.
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Friday, 12 April 2013 08:15 AM
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