Gold buying will rise as 'need for safe havens grows'

A leading global precious metals trader has revealed today (November 18th) that it is bullish about the long-term prospects of gold, according to Mineweb.

ScotiaMocatta, a division of the Bank of Nova Scotia, Canada's third-largest bank, has admitted that the yellow metal's immediate demand outlook is not particularly rosy.

However, it has explained in its recent 'Metal Matters' analysis that "others are looking to diversify into gold as a means of protecting their wealth".

One section is quoted by Mineweb as reading: "Looking forward we think the need for safe-haven investments will grow while at the same time the level of distressed selling may ease, which is likely to see gold prices trend high again.

"If fresh weakness is seen, then expect dips to attract even more buying."

The claim that gold investment is an attractive long-term strategy has also been championed recently by Steve Ellis, head of investment proposition at Skandia International.

He explained that with the current economic instability, it was unsurprising to see investors taking a cautious approach to short-term gold buying.

"With equity prices currently low, I expect that there is good value to be had for people taking a long-term perspective," he said.

Researching your first Gold Investment today? Don't pay more than you should! Make it cheap, simple & ultra-secure at BullionVault...