Current monetary policies have made the precious metals a more attractive investment option, said Alain Corbani, head of commodities at Finance SA.
“My bet, and so far it has been the safest, is to follow what the Fed is saying. So, basically they are saying ‘we are not going to raise rates anymore,’ they are saying that they don’t see a threat on the inflation front. So, the bottom line is real rates will stay where they are. We are going to have a little more inflation … and twin deficits, high debt-to-GDP. I’ll remind you [that these] are the basic ingredients for gold to perform. [It also] means lower U.S. currency, and higher gold price,” Corbani told Kitco News at the Prospectors & Developers Association of Canada convention in Toronto.
KEFI Minerals plc (LON:KEFI) is focused primarily on the advanced Tulu Kapi Gold Project development project in Ethiopia, along with its pipeline of other projects within the highly prospective Arabian-Nubian Shield.