Gold buying on the rise as fear takes over
A leading asset manager has added his voice to the growing number of commentators who are championing buying gold as the US financial markets wobble.
Major investment bank Lehman Brothers has filed for bankruptcy, sending the stock market into turmoil and further deepening the impact of the credit crisis.
With banks across the globe having posted $513.7 billion in credit losses and asset writedowns since the second quarter of 2007, consumers are rushing to buy gold for its safe-haven qualities.
Now Leonard Kaplan, president of Prospector Asset Management in Evanston, Illinois, has explained in an interview with Bloomberg: "Fear is lifting gold. Once confidence is destroyed, it doesn't come back for generations. Gold is the only asset that is not somebody else's liability."
Mr Kaplan's comments come on the back of a bullish assessment on gold last week by Richard O'Brien, the president and CEO of Australian mining company Newmont.
Mr. O'Brien claimed that it is "reasonable" to expect gold prices to hit somewhere between $1,300 and $1,400 per ounce in 2009 or 2010, considering the current economic instability.
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