Gold Investment to Surge as Recent Dollar Rally 'Made No Sense'

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". . .the recent mini-rally in the dollar was peculiar and will be strongly reversed in the coming months."

Peter Schiff, a respected commentator and president of Connecticut-based brokerage firm Euro Pacific Capital, was one of a limited number of economists to predict the current credit crisis. Now he has given the green light to anyone contemplating investing in gold by explaining that the recent mini-rally in the dollar was peculiar and will be strongly reversed in the coming months.

Describing gold as a "safe haven," Schiff said: "A lot of people are seeking safety right now in the U.S. dollar, but that makes no sense to me. That's like jumping out of the frying pan into the fire. I think the dollar is a fundamentally flawed currency that is doomed to collapse and temporarily it's benefiting from the fact it's seen as the alternative to everything else."

Schiff's view is one that is shared by major Asian investment group Eastern Financiers, which claimed last week that gold prices will rise by 20% to 25% in 2009. A new report on the gold industry suggested that a "significant portion" of the current U.S. Treasury bills will be ploughed back into investment in the yellow metal.

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