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Hilbroy Advisory: Gold rises as Middle East violence feeds inflation fear
Hilbroy Advisory: Gold rises as Middle East violence feeds inflation fear
As many as 1,000 people may have been killed in the unrest in Libya, where on Wednesday, thousands celebrated as the east broke free of the control of Mummar Gaddafi, who has vowed to crush the revolt.
Montreal,
Quebec,
Canada
(prbd.net)
25/02/2011
Montreal, Quebec, February 24, 2011– Hilbroy Advisory Inc. (DeutcheBörse: 2H0) Hilbroy Advisory Reports : Gold held at seven-week highs on Thursday, driven by the escalating violence in the Middle East that has propelled oil prices to 2-1/2 year highs and heightened investor fears of an inflationary shock to the global economy.
As many as 1,000 people may have been killed in the unrest in Libya, where on Wednesday, thousands celebrated as the east broke free of the control of Mummar Gaddafi, who has vowed to crush the revolt.
Escalating violence in Libya, Africa's third-largest producer of oil, sent crude futures to their highest in over two years, around $120 a barrel, a level which Deutsche Bank called a "key threat to global growth."
Spot gold was up 0.3 per cent at $1,414.45 an ounce by 1005 GMT, having risen by almost 8 per cent since Jan. 28, when the Egyptian army rolled into Cairo as protesters demanded that former president Hosni Mubarak step down.
US April gold futures were up 0.1 per cent at $1,415.80 an ounce.
"The support we've seen for gold, given what is happening in the Middle East, is obviously to do with the political issues, but I think it's got more to do with the rising inflation expectations on the back of the rapidly increasing oil price," said Standard Bank analyst Walter de Wet.
"Given that we've got negative real interest rates once again and higher oil prices ... we think there's still a couple of bucks in there," he said, of gold's potential to gain further.
GOLD HEDGE Investors often buy gold as a means of protecting their portfolios against rising inflation expectations as gold rises in line with other asset prices, as opposed to bonds where returns are eroded or currencies, which lose purchasing power.
Rising inflation eventually leads to rising interest rates, which ultimately can prove negative for gold, which bears no yield, but when inflation threatens growth, bullion can often offer investors the hedge they need.
Brent crude futures hit their highest since August 2008, fuelled by concern that the bloodshed in Libya that has cut more than a quarter of its oil output could spread to other producers including top exporter Saudi Arabia.
About Hilbroy Advisory Inc.
Hilbroy Advisory Inc. is a Canadian based advisory and consultancy services company founded in 2000. Our Company provides publicly traded and private companies, institutions and individuals with a series of advisory services enabling these companies to fully reach their corporate objectives and potential.
Our specialists will customize a service package that includes reviewing, identifying and recommending a series of specific action and tasks that help their clients’ management decisions when seeking
• Go Public strategy,
• Debt and or equity financing
• Identify prospective investors
• Hire investor relations firm
• Cross listing decisions
• Planning road-shows and promotional campaigns.
Hilbroy Advisory has established numerous international relationships over the years with Broker Dealers, Hedge Funds, Institutional Investors, High net worth Investors as well as with investor relations firms and consultants. These relationships are made available to all Hilbroy clients and our team will manage the relationships from introduction to post financing activities.
Contact:
Jean François Amyot
HilbroyAdvisory, Inc.
1400 rue Begin
Montreal, QC H4R 1X1
info@hilbroyadvisory.com
www.hilbroyadvisory.com
Tel: 514-334-3131
Important Information About Forward-Looking Statements
All statements in this news release that are other than statements of historical facts are forward-looking statements, which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as "anticipates", "believes", "could", "expects", "intends", "may", "should" and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.
A number of factors may affect our future results and may cause those results to differ materially from those indicated in any forward-looking statements made by us or on our behalf. Such factors include our limited operating history; our need for significant capital to finance internal growth as well as strategic acquisitions; our ability to attract and retain key employees and strategic partners; our ability to achieve and maintain profitability; fluctuations in the trading price and volume of our stock; competition from other providers of similar products and services; and other unanticipated future events and conditions.
About
Hilbroy Advisory Inc. is a Canadian based advisory and consultancy services company founded in 2000. Our Company provides publicly traded and private companies, institutions and individuals with a series of advisory services enabling these companies to fully reach their corporate objectives and potential.
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