The remarkably strong performance that gold has delivered during the past 10-plus years is set to suddenly reverse course, a prominent financial services firm noted in a report.
Analysts with Wells Fargo & Company stated the gold price bubble is ready to rupture, according to Bloomberg. Motivated by concern and consideration for gold bugs, the firm's lead analyst stated that serving the warning and making it loud and clear is of vital importance.
Lead analyst Dean Junkans told the news service that the report, which was released on Monday, notes apocalyptic fear will subside and once it does, gold owners will be exposed to risk.
Gold futures are barreling toward 11 straight years of annual gains and that they are up roughly 26 percent thus far this year only strengthens that likelihood. Set earlier this month, bullion's record price of $1,817.60 per troy ounce is largely driven by debt concerns.
French President Nicholas Sarkozy hosted German Chancellor Angela Merkel in Paris on Tuesday so the two leaders could discuss the best methods of controlling the euro zone's sovereign debt crisis, according to The Wall Street Journal. While banks and public finance systems have suffered from threats to solvency, investors have looked to the precious metal to store wealth.
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