A senior figure at a major US bank claimed yesterday (January 8th) that its rich customers are increasingly rushing to buy gold for its safe-haven qualities, according to the Daily Telegraph.
Merrill Lynch, which was taken over recently by the Bank of America, has predicted that the gold price will smash through its record level of $1,030 per ounce this year, hitting $1,150 by June.
Now chief investment officer Gary Dugan has explained that savvy customers are waking up to the potential upside and are seeking to put their wealth into a physical gold investment.
He told the newspaper: "People are genuinely worried about what the world is going to look like in 2009. It is amazing how many clients want physical gold. They are so worried they want a portable asset in their house."
Mr. Dugan also added that gold is in a "win-win" situation as it will prove to be a safe-haven investment if deflation prevails or a store of value if inflationary pressures take over.
His views were backed up recently by Jonathan Barratt, the managing director of Sydney-based firm Commodity Broking Services, who explained that gold outperformed other assets in 2008.
"All roads point to gold continuing its ascent in 2009," he told Bloomberg.
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