“Hang Seng Financial”: The price of gold is likely to be underpinned by interest from central banks in developing nations.
Financial News, HONG KONG – Sources close to “Hang Seng Financial” say that the firm remains confident in the integrity of the long term secular bull market in gold thanks to continuing and ever-present interest from central banks in developing economies.
One of the sources pointed to the November 2009 purchase of 200 tonnes of IMF gold and to the steady accumulation by the People’s Bank of China as evidence of support for the price in the years going forward.
“Hang Seng Financial” analysts are thought to believe that the trend will continue as governments in developed nations continue to resort to the printing press to stimulate their moribund economies. China has, on several occasions, said that it remains concerned at the effect of the US Federal Reserve’s quantitative easing program on the value of its dollar-denominated holdings.
China holds nearly $700 billion of US Treasury bonds and mortgage agency debt issued by Freddie Mac and Fannie Mae is widely known to be seeking to diversify the content of it foreign currency holdings away from the US dollar.
“Hang Seng Financial” believes that emerging nation gold purchases are indicative of a fundamental shift of wealth and global financial influence from the West to the East and continues to encourage clients to purchase gold and silver as a means to protect their wealth.
