Fundamentals continue to show a bull market in gold, silver and platinum says Nick Barisheff, president of Bullion Management Group, which manages the Millennium BullionFund.

Barisheff gave a keynote speech on the 2008 investment outlook for precious metals at the Empire Club’s 14th Annual Investment Outlook meeting in Toronto on January 3.

“As we begin 2008, one thing is undeniable,” Barisheff stated in his address. “The gold price has been steadily rising in all currencies since the summer of 2005 and that rise is now accelerating. Since climbing precious metals prices are an accurate indicator of future inflation, investors would be prudent to structure their portfolios to minimize the effects of rising inflation, and protect their wealth from systemic financial risks.”

He continued by stressing that as the prices of gold, silver and platinum continue to rise, mainstream investors will reallocate a portion of their financial assets, which now exceed US$187 trillion, to precious metals. Since aboveground supplies of gold, silver and platinum total less than US$4 trillion and there is only US$600 billion in privately held gold bullion, substantially higher bullion prices are inevitable.

“When that reallocation begins, gold at US$1,100 per ounce will look like a bargain,” Barisheff concluded.

Barisheff is the founder and president of Markham, Ont.-based Bullion Management Group Inc, a bullion investment company.