“Dai-Ichi Securities“, the Asia-based investment boutique, says that UK clients who followed its recommendation to buy gold over a year ago are sitting on 25% gains in sterling terms.

The stellar “Dai-Ichi Securities“ of gold is “something of a misnomer“ said a source close to the firm who explained that it was more a case of the abysmal job the British Pound had done of preserving purchasing power over the year.

“Dai-Ichi Securities“ analysts said they expected the price of gold to reach £1000 within the next 2 years because of the state of Britain’s public finances. They expect the new post-May 6 government to pursue policies that will weaken the pound by design or as a side-effect of other policies.

Although “Dai-Ichi Securities“ specializes, primarily, in the identification of and investment in healthcare and industrial equities on behalf of institutional and individual investors, it said it had received and continues to receive an increasing amount of interest from clients on the merits of gold as a hedge against inflation.

“Dai-Ichi Securities“ issued a caveat to clients, however, warning that although the bull market in gold was eminently intact, buyers should be aware that trends of this nature seldom proceed in a straight line and that there would inevitably be pullbacks in the price.

Visit the Author's website: http://www.the-writers-block.com/peter-marsh-of-dai-ichi-securities-us-bond-supply-issues-loom/

The post Gold Hits New Record: Dai-Ichi Securities appeared first on Submit Articles.

Dai-Ichi Securities says that the stay of execution represented by the EU’s €750 billion defense package for the euro may see attention shift away from the Greek debt crisis towards the UK’s political landscape and the uncertainty caused by the hung parliament.

Indeed, markets are already factoring in the fact that the Liberal Democrats’ insistence on electoral reform is likely to scupper the chance of a coalition with the Conservative Party which considers the very notion of proportional representation to be anathema.

Markets acknowledge that a Conservative led coalition would be most likely to begin laying down measures to cut Britain’s deficit but as it is unlikely that David Cameron would be able to force such a concession through the rank and file of his party, the prospect of a Labour/LibDem coalition and the corresponding reluctance to begin spending cuts and tax hikes immediately would see sterling hammered and gilts dumped on the markets.

Dai-Ichi Securities said that with Britain’s budget deficit approaching that of Greece, the time had come for decisive action to be taken and it was imperative that the UK sent a clear message to the markets.

Dai-Ichi Securities says it is likely that sterling will be sacrificed and restated its standing advice to clients to sell sterling with conviction adding that the currency could fall to $1.40.

Visit the Author's website: http://www.the-writers-block.com/peter-marsh-of-dai-ichi-securities-us-bond-supply-issues-loom/

The post Dai-Ichi Securities ““ Will Attention Turn To UK. appeared first on Submit Articles.