The gold price
Inflation could spark Gold Investment - 21 May 2009
Buying Gold may become more widespread as the economy starts to recover, it has been suggested.
In a report compiled by BNP Paribas, strategist Andrew Chaveriat said that Gold Investment interest may rise on the back of inflationary fears over the coming months.
Gold is traditionally seen as a safe haven in times of economic uncertainty, and the decision of governments to use quantitative easing to stimulate their national economies has prompted concern that recession could be followed by a period of inflation.
"Longer-term inflation worries will continue to shape demand for gold," Mr. Chaveriat confirmed in the report.
According to Bloomberg, Mr. Chaveriat went on to predict that gold would make a "creeping advance" towards record price highs, marking the yellow metal out as a sound long-term investment.
He noted that chart patterns hint a level above $1,000 could be achieved within the next few months.
Meanwhile, a UBS report indicated a "bullish outlook" for gold with prices moving in a "positive but slowing way", Bloomberg states.
The news follows soon after Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong, offered a similar prediction.
"Gold is inching up a bit because of inflation worries, of (governments) printing money, with investors switching to gold," he told Reuters.
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In a report compiled by BNP Paribas, strategist Andrew Chaveriat said that Gold Investment interest may rise on the back of inflationary fears over the coming months.
Gold is traditionally seen as a safe haven in times of economic uncertainty, and the decision of governments to use quantitative easing to stimulate their national economies has prompted concern that recession could be followed by a period of inflation.
"Longer-term inflation worries will continue to shape demand for gold," Mr. Chaveriat confirmed in the report.
According to Bloomberg, Mr. Chaveriat went on to predict that gold would make a "creeping advance" towards record price highs, marking the yellow metal out as a sound long-term investment.
He noted that chart patterns hint a level above $1,000 could be achieved within the next few months.
Meanwhile, a UBS report indicated a "bullish outlook" for gold with prices moving in a "positive but slowing way", Bloomberg states.
The news follows soon after Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong, offered a similar prediction.
"Gold is inching up a bit because of inflation worries, of (governments) printing money, with investors switching to gold," he told Reuters.
Investing in Gold? For the cheapest, fastest & most secure route to solid Gold Investment simply register for a free, no-obligation account at BullionVault now...
Goldbug, 21 May '09
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