$250 million fund manager Diego Parrilla says central banks around the world are avoiding the problem by printing Access money. This does not solve the real problem of the global economy.
Diego Parrilla predicted in the year 2016 that gold would reach record highs in the next five years.
Gold had reached its all-time high in August 2020 during the Corona period. In the domestic market, it is about Rs 9000 cheaper than that level. A fund manager says that in the next 3-5 years, the rate of gold may double as compared to the present. According to him, the central banks and the government around the world have flooded the system with liquidity. How dangerous its effect can be, it is not being discussed at the moment.
According to a Bloomberg report, the Quadriga Igneo fund’s fund manager Diego Parilla, who manages about $250 million in funds, says the consequences for Access Liquidity will be dire. The asset bubble has been created due to low interest rates. When this bubble bursts, it will be difficult for the central banks of the world to handle it. Diego Parrilla predicted in the year 2016 that gold would reach record highs in the next five years. His guess was absolutely correct.
Gold can reach $5000
He said that in the next 3-5 years, gold in the international market will be at the level of $ 3000-5000 per ounce. In August 2020, gold reached an all-time high of $ 2075 per ounce. It is currently running in the range of $1800. At present, the 10-year US bond yield remains at 1.25 per cent, its all-time low.
Contrary to the opinion of other experts
Diego Parrilla has over 25 years of experience in the commodity market. He has worked at institutions like Goldman Sachs and Bank of America Merrill Lynch. Other commodity market experts say that as the economic recovery accelerates, the price of gold will decline. By the end of this year, it has been estimated to come down to $ 1700. This estimate is from Precious Metal Experts of UBS Group.
Central banks are avoiding the problem by printing money
Diego Parrilla says that central banks around the world are printing unaccounted money at this time. This solves the problem, but does not solve the problem. In such a situation, when the situation improves, its serious consequences will be visible.
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