The debt ceiling debate in Washington and the ongoing sovereign debt crisis in Europe have helped to push the price of gold to record levels. Recent reports that politicians in both the U.S. and Europe are nearing a deal on their respective situations will do nothing to slow the price gains in the commodity sector, James West, Portfolio Advisor at Midas Letter Opportunity Fund, tells BNN.
“We’re going to see both the U.S. and Europe kick the can down the road a bit more by creating more debt, in short that’s gong to keep the party going and at this time we’re still building bubbles in commodities,” he says. “The see-saw pattern of rise, profit-taking, fall is going to continue.”
West also believes the price of copper will be pushed higher.
“We’re still going to see that bubble that’s been developing in copper for the last five years continue to develop—it’s trading near its all-time high—and so the copper game is very much alive,” he says.
