Gold News

Gold Buying driven by metal's 'safe haven' status

The second half of 2009 saw a fundamental switch in the market for Gold Investments, as central banks switched from net suppliers to a source of demand due to the metal's safe haven status.

Writing on Wealth Briefing, one expert in the precious metal explained that demand for Investments in Gold are increasing because of its "rarity and indestructibility".

Johanna Keller, a fund manager at Geneva-based private bank Lombard Odier, said: "Its ability to preserve value in real terms makes it an excellent hedge against inflation, and against economic and political uncertainty.

"For the same reasons, it offers protection against the weakening of the dollar."

Asian brokerage CLSA Asia-Pacific Markets is extremely positive on Gold ahead of the Chinese New Year, which will bring in the Year of the Metal Tiger.

The firm's latest forecast predicts that Gold Prices will reach $2,000 per ounce by the end of 2010, despite volatility across commodity markets in the first months of the year.

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