A senior figure at Alaron Metals Services claimed yesterday (February 11th) that his firm is maintaining its stance that Investing in Gold is a sound long-term strategy, Inside Futures reports.
The yellow metal has continued to perform well in recent weeks despite a number of traditionally negative influences, such as weak oil prices and a relatively strong dollar.
With that in mind, Dave Meger, managing director of the Chicago-based wholesale precious metals dealer, has explained that gold is far more attractive than other industrial metals.
"The safe-haven status of gold remains the defining factor for the yellow metal at this point," he told the news provider.
"Significant weakness in some other major currencies has actually been an additional positive factor for gold. Our long-standing recommendation of being spread long gold/short an industrial metal (or crude) continues to play out well."
Those sentiments were echoed last week by Joe Foster, part of the team which manages $8 billion in gold and other assets at New York firm Van Eck Associates.
He explained that the major financial outlay by governments as they attempt to boost banks will ultimately help anyone with a Gold Investment as "explosive" inflation could result.
"[Look at] all the liquidity, the printing of money and the other measures the government is taking," he told Bloomberg.
"Once the velocity of that money starts to pick up in a more positive environment, it could create an explosive situation."
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