Okuma Group on how the dash for gold in Europe points the way for the UK‘s short-changed savers.
Okuma Group analysts have apparently stepped up their efforts to encourage their UK clients to protect their capital from the imminent ravages of inflation citing the rush to buy gold and other hard assets in Europe as the single currency plumbs four year lows against the US dollar.
The UK government is tasked with reducing the country‘s huge budget deficit and has already indicated that cuts in public spending and higher taxes on the way. Most economists believe that the measures pose a significant threat to the fragile economic recovery and Okuma Group appears to concur if the content of its latest client newsletter is anything to go by.
The firm believes that the prospects for lower growth will send the British pound lower against the US dollar and other world currencies making the goods Britain imports more expensive. One of the Okuma Group analysts said that with British banks and building societies paying next to nothing in terms of interest and inflation currently running at 3.7%, the need to protect the purchasing power of their hard-earned capital ought to be the number one priority for British savers.
Okuma Group continues to extol the virtues of the traditional safe-haven of gold but also identifies silver and other commodities like oil and foodstuffs as excellent stores of value in times of financial turmoil.
The firm said that the wide availability of exchange-traded funds which invests in said hard assets could yield far higher returns that those achievable in traditional deposit or savings accounts.