“Gold holds its intrinsic value better than anything else on earth … gold is not perfect as a stable value but it is better than anything we have found in over 4,000 years,” he said.
“With unstable currencies you get less productive long-term investments, which is key to economic growth.”
Meanwhile, HSBC’s global chief economist, Janet Henry, said at a panel at the same conference that she would not be surprised if sterling continued to fall below the low of $1.0382 on Monday, but she did not expect it to stay at those levels.
“I don’t think there will be currency intervention on the sterling … but the onus is now on the central bank to do more to tighten policies to stabilize the situation,” Henry said.
“I think unless we get severe financial distress they [bank] will wait until the next meeting to show decisive action to raise rates aggressively in the next couple of meetings.”
