ZLATO – zlato by malo dosiahnuť $1000

The prospect of worldwide stagflation should drive gold past the $1,000 barrier this year.

Gold was stronger today, helped by safe-haven buying as fears over a US recession continue. The yellow metal had slipped amid the week's wild stock market swings, and alongside the dramatic interest rate cut from the Federal Reserve earlier this week.

Today, Mr Hambro said: "The Fed is cutting rates to stimulate the economy, but times of crisis usually means investors head into gold. And during this - one of the most turbulent weeks of even my turbulent life - gold has outperformed."

Joining investment bank Goldman Sachs, which recently predicted that gold prices could hit a $1,000 an ounce by the third quarter - as the dollar continues its slide and US economic woes deepen - Mr Hambro said: "I agree - if I was a holder of US dollars, gold would look very attractive.

"In my view there is the possibility of stagflation on a worldwide scale - except for the RICs in the BRIC countries (Brazil, Russia, India and China)."

25.01.2008

"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value."   Alan Greenspan