Buying Gold 'is not just a hedge against inflation'
A senior figure at AWD Chase de Vere suggested today (May 27th) that Gold Investment is an attractive proposition for a number of reasons, the Daily Telegraph reports.
The yellow metal is currently trading below its all-time high of $1,033 per ounce but some commentators have predicted that it will have a strong second half of 2009.
Now Justine Fearns, head of investment research at the independent financial advisory firm, has noted that investors will continue to Buy Gold as it is a hugely versatile asset.
She told the newspaper: "It may slip up a little here and there, but the bottom line is that gold is the asset that investors turn to in times of crisis; it doesn't have to just be a hedge against inflation.
"Its liquidity is key, depending on how it is held, as it helps investors meet liabilities. It is also still recognised as an alternative currency, which adds to the reasons for [buying it]."
Last week, Rozanna Wozniak, investment research manager at the World Gold Council, also sounded a positive note for gold, mainly focusing on the potential for a period of inflation.
"It's great we're seeing an economic recovery, but it would be unusual to see such a rapid turnaround," she told MiningMX.
"If further signs of recovery emerge, inflation concerns would probably intensify and that's supportive for gold demand as well."
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