Gold rises as the perfect hedge in a world of depreciating currencies
from Arabian Money
While gold is often seen as a hedge against inflation, gold could still rise despite fears of deflation around the world, William Rhind, CEO of World Gold Trust Services, told CNBC on Tuesday.
That’s because governments often respond to deflationary forces in the global economy by weakening their currency for competitive reasons, he said in a ‘Closing Bell’ interview from the Inside ETFs conference in Hollywood, Florida. ‘Currency weakness or debasement has typically been a good thing for gold,’ he added.