The gold price
Gold Investment focus to 'remain on wealth preservation' - Wednesday 20th May 2009
The head of the World Gold Council (WGC) has suggested today (May 20th) that investors will continue to Buy Gold in the next ten years as a store of wealth, MiningMX reports
In its latest Gold Demand Trends report, the industry association noted that gold demand rose by 38 percent to 1,016 tonnes in the first quarter of 2009.
With that in mind, WGC chief executive officer Aram Shishmanian explained that levels of Gold Investment will remain strong for the foreseeable future as the yellow metal's safe-haven qualities are still providing considerable appeal.
He told the news provider: "There has been a seismic shift away from capital appreciation towards wealth preservation and we believe this trend will define investment behaviour in the next decade."
Mr. Shishmanian's comments were echoed last week by Caesar Bryan, who manages about $450 million worth of assets at GAMCO Gold Fund.
He explained that the response of central governments to the financial crisis means that investors are keen to buy gold as they believe a prolonged period of inflation is on the horizon.
"We seemed to avoid that fear about the financial meltdown," he told Reuters.
"Now, people are looking forward through the valley of this economic crisis and thinking maybe the problem is going to be too much inflation because we are creating too much money."
Want to Buy Gold but unsure how to do it? For dealing spreads of $3 per ounce – plus secure, professional storage in Zurich, Switzerland for just 0.12% per year – click through to BullionVault now...
In its latest Gold Demand Trends report, the industry association noted that gold demand rose by 38 percent to 1,016 tonnes in the first quarter of 2009.
With that in mind, WGC chief executive officer Aram Shishmanian explained that levels of Gold Investment will remain strong for the foreseeable future as the yellow metal's safe-haven qualities are still providing considerable appeal.
He told the news provider: "There has been a seismic shift away from capital appreciation towards wealth preservation and we believe this trend will define investment behaviour in the next decade."
Mr. Shishmanian's comments were echoed last week by Caesar Bryan, who manages about $450 million worth of assets at GAMCO Gold Fund.
He explained that the response of central governments to the financial crisis means that investors are keen to buy gold as they believe a prolonged period of inflation is on the horizon.
"We seemed to avoid that fear about the financial meltdown," he told Reuters.
"Now, people are looking forward through the valley of this economic crisis and thinking maybe the problem is going to be too much inflation because we are creating too much money."
Want to Buy Gold but unsure how to do it? For dealing spreads of $3 per ounce – plus secure, professional storage in Zurich, Switzerland for just 0.12% per year – click through to BullionVault now...
Goldbug, 20 May '09
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