Investors rushing to buy gold 'in pure panic'

A senior figure at ETF Securities has suggested that investors are still turning to gold as they fret about the state of the global economy, Reuters reported yesterday (November 24th).

Governments around the world have pumped money into financial institutions and conducted coordinated interest rate cuts in order to restore some stability to the markets.

However, Nicholas Brooks, head of strategy at the exchange-traded commodity specialist, told the news provider that an undercurrent of fear is still prevailing and leading to steady gold investment.

He said: "Investors have been in pure panic. They think the world is ending. When people get into that sort of mentality, one of the first places they go to is gold."

The view that investors are concerned about where to place their money has been echoed recently by Steve Ellis, head of investment proposition at Skandia International.

He also explained that a survey by the investment firm revealed that 79 per cent of offshore advisers believe that investing in gold offers a portfolio a unique flexibility and security.

"It is no surprise that in the current climate investors are taking a more cautious approach to investing," he said.

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

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