Speck explained that the key difference between gold and currencies like the euro or dollar is that it is not some kind of commodity money and its mass can't be increased arbitrarily. Gold also can't go bankrupt and be declared worthless, the financial expert continued.
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When commenting on predictions by analysts from the ICBC Standard Bank that gold price will reach $1,300 per ounce by the end of the year, Speck said that in the long run, prices are likely to go even higher. He explained that at least since 2011 central banks have been actively printing money and most of them were investing in real estate and stock markets, but not in gold.
The analyst expects that the price of gold will rise significantly by the end of year and has recommended investing in physical goods, such as Canadian "Maple Leaf" gold coins or Vienna Philharmonic standard coins, citing a low buy-sell margin and absence of VAT payments.
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Speck also expressed skepticism over the dollar's role as a leading world currency, saying it is currently in crisis due to the "high amount of US debt." He added that some countries have started realizing the advantage of gold, which "can't be politically devalued." The financial expert brought up Russia's Central Bank as an example. The financial institution has sold off a significant portion of its investments in US debt while purchasing significant amounts of gold. He believes that many countries will soon follow Russia's suit.
The views and opinions expressed are those of the speaker and do not necessarily reflect those of Sputnik.
