Tim McCutcheon, Director of Abzu Gold: Money printing will send gold soaring, no bubble

Thursday, 23 August 2012 15:14

The world expects more money to be printed in the near future to stimulate the global economy. Tim McCutcheon, Director at Abzu Gold, says that when there is so much money out in the system a dramatic rise in the price of the yellow metal is bound to happen.

“Now once people sort of see there is lots and lots of printing money into the system, getting money to move around and build new businesses and everything else. Once that starts to kick in then the velocity of money kicks up. But they printed so much money now in the past three years, that when the velocity does kick in, the effect it has is much bigger, because there is that much more money out in the system. And that’s where you gonna get the gold price to go up dramatically.”

He also dismissed talk of a bubble in the gold market.

“To say that this is a bubble is pretty hard, because if we talk about the total amount of assets invested in gold globally, it’s miniscule. Very very few people actually have gold in investment portfolios… It’s not a bubble if you are buying for cash gold not on margin, sticking it in your safe. That’s not a bubble. And that’s what represents more the gold market today.”


Courtesy of RT.com

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