Gold News

Double-dip recession 'good for Gold Prices'

A double-dip recession may be the last thing that most investors want, but such an outcome could be good news for those with Gold Investments.

That is according to MineWeb's Lawrence Williams, who explained that if - as is looking increasingly likely - Europe and the eurozone is plunged back into recession, Gold Prices will rise beyond their current levels.

Although such a scenario would be bad for commodities such as copper and base metals, Gold Bullion would benefit because of its appeal to investors as a safe haven asset, capable of storing value and protecting it from currency fluctuations.

Mr Williams noted: "While gold fundamentals aren't great, as long as investment flows continue to remain strong, then the price may well continue onwards and upwards.

"And every successive bout of bad economic news will stimulate this investment flow further."

He added that there are bound to be more economic "trials and tribulations" in the future that would serve to raise Gold Prices.

Speaking to the Press Association, Mike Lenhoff, chief strategist at Brewin Dolphin, which is a UK-based independent investment manager with £21 billion ($30 billion) under management, was also positive about gold.

He said that increasing Gold Prices reflect the precious metal's "all-weather" status as an inflation hedge.

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