Gold buying on the rise as there are 'few reliable assets left'
Afshin Nabavi, head of trading at MKS Finance, has explained today (September 18th) that gold is one of the few reliable assets left for investors to purchase.
The precious metal recorded its biggest daily rise in history yesterday, as the price soared by $90 per ounce on the back of the stock markets continuing to slide.
Now Mr. Nabavi has suggested that with banks scared of lending to each other and the overall financial turmoil showing no signs of improving, buying gold is a wise strategy.
He said: "What is left for people to put their money in? They can't trust the banks, they can't trust insurance companies, they can't trust the stock markets.
"Despite the sharp move gold had on the downside (recently), compared to everything else - oil, platinum, other commodities - it actually held up well."
A number of central banks - including the US Federal Reserve, the European Central Bank and the Bank of Japan - have announced that they will be taking steps to resolve liquidity issues in the markets.
However, Philip Carlsson, global products manager at Saxo Bank, claimed that with such turbulence at present, making a gold investment is increasingly being viewed as the most prudent tactic.
He said: "What we are seeing right now is investors seeking safe haven in the gold market. These market conditions make it difficult to predict about where we are headed."
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