According to Keith Weiner, CEO and founder of Monetary Metals, more and more people are buying gold not to protect their savings from inflation, but to avoid the need to be a creditor in deteriorating economic conditions.
In Weiner's opinion, the biggest support for the yellow metal stems from the growing amount of global debt and US government debt. Although the US authorities have begun to take significant austerity measures, cutting funding for various programs and laying off workers, Weiner believes those moves to be not enough.
Weiner's comments came amid a surge in gold prices above the $3,100 level after a rise of about 20% in the first quarter.
In the current situation, Monetary Metals sees stronger demand for gold as an important monetary asset compared to silver. In the forecast on precious metals prices, published by the company, the dynamics of silver market is expected to lag behind the performance of gold both in terms of growth rates and volumes.