Pension funds and other institutional investors observing the eurozone sovereign debt crisis should add gold to their portfolios, says bullion expert Nick Barisheff, CEO of Toronto-based Bullion Management Group Inc.
“Sovereign debt and bank leverage in developed countries is out of control. As they turn their gaze from European turmoil back to exploding U.S. and Japanese debt, prudent investment managers should re-balance their portfolios appropriately before bigger storms hit,” he says.
“There are several independent trends that are impacting the price of gold. The most prominent are increased central bank buying, the movement away from the U.S. dollar, and factors like the aging population, job outsourcing and peak oil that will all compel Western governments to continue devaluing their currencies and adding to their debts.”
This will create many more financial scares in the months and years to come; pension funds and institutional investors, therefore, can only benefit from adding bullion to their portfolios, he says.