Gold is the perfect diversifier, against both hyperinflation and deflation. Jeffrey Gundlach CEO DoubleLine Capital commented on Thursday, the global economy could well see another deflationary scare and re-affirmed his view on gold as a diversifier.
Gundlach recently spoke of how across America and also Europe the inflation rate is either fallen or at its lowest point since 2011. He went on to comment that most economies are likely to see deflation once central banks stop there stimulus programmes.
The fed have recently announced there will continue scaling back there bond buying activity whilst The European Central Bank have recently taken to money printing to boost the economy and to try and bolster up inflation.
Despite Gundlach’s optimism over holding gold he doesn’t see the $10,000 an ounce materialising any time soon.