Buy gold bullion now because inflation will follow deflation - Wealth Managers

Sri-Kumar Global exec warns of "inflationary consequences of quantitative easing"

"Because of the deflation that we talked about, that pushes the gold bullion price down, and if we go down to $1,300, you've already gone ... from $1,921 all down to $1,300," Sri-Kumar Global Strategies President Komal Sri-Kumar tells Bloomberg in a June 18 interview.

"After that I expect the inflationary consequences of quantitative easing both here -- a pickup in inflation. The deflation may not last very long -- I expect it to be like a couple of months perhaps, and then the turnaround takes place, and that's when, when the deflation hits, that's when you expect to get out of bonds. ... Go into gold; go into commodities. ... I have been negative on commodities for a couple of years. It will change, and I'll become immensely enthused about all of these opportunities at that time. ... The most bullish thing that I see (with gold) is that you can get out of paper money, that it's an alternative to paper. And it becomes a store of your wealth in a form that you can protect yourself against inflation. The situation with interest rates rising as we have had in the last four to six weeks, that's not good for gold because you would rather take the money and put it into fixed-income and earn a slightly higher rate of return. But when interest rates go down and you have a deflationary phase, this is the time you say I'm going to be going more into gold in anticipating the turnaround."

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