Gold News

Buying Gold represents 'an ultimate store of value'

The man who set up the largest gold mining company in the world has described the yellow metal as an "ultimate store of value", the Canadian Press reports.

Gold Investment has been on a sharp upward curve since the start of the financial crisis, with people looking to find alternatives to placing their money in paper currencies.

Now Peter Munk, chairman of Barrick Gold, has explained that the effects of the banking sector trauma and subsequent recession will weigh heavily on the economy for some time to come.

He was quoted by the news provider as saying: "I think whatever happens in the economy - and let's pray it's going to correct itself - the trauma of what we have gone through over the past year will be deeply ingrained and remain.

"It will make people much more aware of the fact that gold indeed is an ultimate store of value."

This increase in Gold Investment demand was also alluded to recently by Marcus Grubb, managing director of the World Gold Council, who is expecting it to outpace jewelry demand in 2009.

"The structure of the gold market is changing. In the first quarter I think investment demand could be higher than 30 percent," he said at an ETF securities seminar in London.

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