Gold News

Gold prices to 'stay up' in the credit crunch

A prominent figure at a major Australian stockbroker firm has urged people to buy gold if they are concerned about the effects of the economic crisis, the Melbourne Herald Sun reported on Saturday (January 10th).

The yellow metal - which is seen as a hedge against inflation - has been on a bull run since hitting its last significant low back in 1999 and achieved an all-time high price of $1,030 per ounce in March last year.

Now Allan Furlong, manager of private client services with Sydney-based Joseph Palmer and Sons, has explained that purchasing gold bullion is a sensible approach in the current climate.

He told the newspaper: "I expect gold to stay up until we come out of this credit crunch. If you want gold - if you think the world is going to end - then go and buy physical gold and pay to have it stored somewhere."

Mr. Furlong's view on gold investment was strongly echoed recently by Darren Heathcote, head of trading at the Sydney offices of Investec Bank, South Africa's largest bank.

He explained in an interview with Bloomberg that concerns over the dollar are persisting and that buying gold as a safety measure is on an increasingly upward trend.

"Gold is obviously gaining a lot of favor as a safe haven asset again," he told the news provider.

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