Investment guru pronounces gold the “ultimate asset bubble”
In an interview from the Davos economic summit, investment guru George Soros expressed concern that the current interest rate climate was encouraging policymakers to create asset bubbles that could lead to future crashes. The ultimate asset bubble, he warned, is gold, which rose some 40 per cent last year to a record high of $1,225 per ounce. Investors thronged to the metal amid fears of potential inflation and fading faith about the stability of previously-assumed safe assets such as government debt. Soros added that by proposing imminent “exit strategies” from the unprecedented support handed out to troubled banks and consumers, governments around the world could be in danger of triggering a double-dip in the global economy.