Gold buying is popular as it will 'never go to zero'
A senior figure at New Orleans-based brokerage house Blanchard and Co has claimed that investors are rushing to buy gold for its safe haven qualities.
The US financial system has been in a state of turmoil since the collapse of investment bank Lehman Brothers, while the government's proposed $700 billion rescue is now in doubt.
Now David Beahm, vice-president of economic research at Blanchard, has explained that gold is proving popular as no one is certain how the crisis will unfold in the coming months.
He said: "It really has investors spooked, and they're looking for safety. Throughout history, people have turned to gold for safe haven. Gold will never, ever, ever go to zero."
Meanwhile, Peter Grandich, editor of the Grandich investment letter, has explained that gold prices are being pushed up by cooling mining production and gradually increasing demand.
He added: "They say in the worst of times people won't accept paper money, but they'll accept gold. They say it's the ultimate money."
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