Economic worries 'causing a return to buying gold'

A leading precious metals trading manager has claimed today (November 4th) that concerns over the economic situation are persisting and investors are beginning to move back towards buying gold.

Governments around the globe have pumped up to $3 trillion into the markets as trust between banks has been eroded and other financial institutions continue to teeter on the brink.

Now Dick Poon, manager of the precious metals trading desk at Heraeus Ltd, has explained that gold investment is on the rise as worries over the dollar's long-term prospects refuse to subside.

He told Bloomberg: "There's some physical demand from investors in Asia and Europe who are seeking to divert some of their assets into gold as they continue to worry about paper currencies and the banking system in general."

Those comments have been backed up by Gus Ganoudis, an investment adviser for Olympian Capital Management, based in Fort Lauderdale, Florida.

In an interview with stamfordadvocate.com, he explained that the current lull in gold prices is an opportunity to buy and that gold should form ten per cent of an investor's portfolio.

"Right now is a good time to get into precious metals. Gold is coming off its high," he said.

"It is a hedge against inflation that comes from the government printing more money."

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