A leading columnist on respected mining industry website MineWeb has suggested today (October 27th) that investing in gold is still a safe bet in the current economic climate.
Lawrence Williams has explained that despite coordinated efforts around the globe to alleviate the effects of the liquidity crisis, there is more turmoil to come in the future.
In a wide-ranging piece on mineweb.com, he points out the fact that with the economy shrinking and recession looming, mining supplies are bound to be affected considerably.
He writes: "But with hedge funds collapsing left, right and centre, banks needing to be bailed out by governments and governments by the IMF, the financial turmoil certainly isn't done yet.
"The commodity price falls will certainly have a significant impact on new mining projects and expansions and even with zero worldwide growth this is likely to lead to metal supply shortfalls in the not too distant future."
Mr. Williams also explains that the recent slump in gold prices may well be linked to nervous investors selling up to generate much-needed cash in the short-term.
However, he continues that when this trend is over and the dust settles, it is likely that the precious metals sector will again emerge as the most prudent method of capital protection.
"When immediate liquidity needs unwind, gold and silver could see a substantial rise given the inflationary element in all the major rescue packages unfolding around the world, and as the current trend of dollar strength diminishes," he added.
For the very best Gold Prices – live online – plus secure storage of your physical property in Zurich, Switzerland for one-third the cost of an exchange-traded gold fund, click through and register with BullionVault now...