A trader at Commerzbank suggested yesterday (February 5th) that people are increasingly Buying Gold as there is a lack of trust in relation to other commodities, Reuters reports.
Although Gold Prices have cooled slightly after reaching a record high of $1,030 per ounce last March, the yellow metal had a strong 2008 in comparison to its rivals.
It has also made a positive start to 2009 and when combined with the growing fears over the threat of impending inflation, Rory McVeigh from the second-largest bank in Germany has explained that it is easy to see why people are turning to gold.
"The fact that gold as an asset class has more trust in it than a lot of other financial products out there at the moment means people are continuing to push money in there," he told the news provider.
Mr. McVeigh's comments come after Matt Zeman, head trader at Chicago-based firm LaSalle Futures, predicted that gold prices will continue to rise this year as investors look for a store of wealth.
"You see these steep sell-offs in equities and we see a lot of that money coming back into gold," he told the Associated Press.
"The biggest beneficiary right now of the flight-to-safety bid is gold. I think it looks poised to continue to move higher."
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