The gold price
Inflation concerns 'could boost' Gold Investment - Wednesday 20th May 2009
A senior figure at the World Gold Council (WGC) claimed today (May 20th) that Gold Investment could be boosted on inflation concerns in the coming months, MiningMX reports.
The body released its latest Gold Demand Trends report this week, which revealed that investment in Gold Bullion, coins and other instruments rose by 248 percent to 596 tonnes in Q1 2009.
Now WGC investment research manager Rozanna Wozniak has explained that, with the possible 'green shoots' of an economic recovery emerging, buying of the yellow metal as a hedge against inflation could increase.
"It's great we're seeing an economic recovery, but it would be unusual to see such a rapid turnaround," she told the news provider.
"If further signs of recovery emerge, inflation concerns would probably intensify and that's supportive for gold demand as well."
Last week, Mark Dampier, head of research at Hargreaves Lansdown, also expressed his support for investing in gold by criticising British prime minister Gordon Brown's decision to sell half of the UK's gold reserves.
Mr. Brown, who was chancellor at the time, sanctioned the auction of 350 tonnes of the yellow metal between July 1999 and March 2002, when gold prices were at about $276.
Commenting on that decision, Mr. Dampier told the Daily Telegraph: "This has to be one of his worst clangers and I'm not sure he thought much about the decision.
"Before you buy or sell something it's common sense to see what the price has done - by looking at the price chart going back 20 to 25 years. Gold had peaked at about $850 and come all the way down."
Looking to Buy Gold today? For direct access to live Gold Market prices – and to save up to 80% compared with coin dealers' fees – click through to BullionVault now...
The body released its latest Gold Demand Trends report this week, which revealed that investment in Gold Bullion, coins and other instruments rose by 248 percent to 596 tonnes in Q1 2009.
Now WGC investment research manager Rozanna Wozniak has explained that, with the possible 'green shoots' of an economic recovery emerging, buying of the yellow metal as a hedge against inflation could increase.
"It's great we're seeing an economic recovery, but it would be unusual to see such a rapid turnaround," she told the news provider.
"If further signs of recovery emerge, inflation concerns would probably intensify and that's supportive for gold demand as well."
Last week, Mark Dampier, head of research at Hargreaves Lansdown, also expressed his support for investing in gold by criticising British prime minister Gordon Brown's decision to sell half of the UK's gold reserves.
Mr. Brown, who was chancellor at the time, sanctioned the auction of 350 tonnes of the yellow metal between July 1999 and March 2002, when gold prices were at about $276.
Commenting on that decision, Mr. Dampier told the Daily Telegraph: "This has to be one of his worst clangers and I'm not sure he thought much about the decision.
"Before you buy or sell something it's common sense to see what the price has done - by looking at the price chart going back 20 to 25 years. Gold had peaked at about $850 and come all the way down."
Looking to Buy Gold today? For direct access to live Gold Market prices – and to save up to 80% compared with coin dealers' fees – click through to BullionVault now...
Goldbug, 20 May '09
Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.
