Investors are turning gold into a speculative asset by flooding gold markets with billions in capital increasing the risk of becoming victims of their own success. But what is driving the boom?
For Nicky Shields, the current gold rally, which saw prices virtually "explode in recent months," is an indication of "very little trust in the system."
"There is less trust in government, less trust in the functioning of society," the head of Precious Metals Investment Strategy at MKS PAMP Group told DW.
Now, the emerging question, she added, was whether the relatively small gold fund market could absorb the current flood of capital.
Nick Shields is wary of further rising gold prices Image: MKS PAMP Group
Based in Geneva, MKS PAMP Group is one of the most influential players in the global precious metals industry. It processes gold, silver, and platinum into bars, coins, and products for jewelry and industrial companies, and offers
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