Gold News

Attentions are turning to 'long-term Gold Investment'

VM Group analyst VM Turner claimed today (June 30th) that long-term Gold Investment is proving popular at present, Reuters reports.

The US government's sizeable fiscal deficit - which has grown considerably as a result of the global financial crisis - is sowing seeds of concern that an inflationary period will ensue.

Investors often Buy Gold as hedge against inflation and Mr. Turner explained that many of them are now snapping up the yellow metal to prepare for that eventuality.

"The focus is turning to fears of inflation rather than fears of deeper recession," he told the news provider.

"But there are no immediate signs of inflation anywhere for now, so investors are looking to the long term, and of course when inflation does start to go up, the price of gold will be rising well ahead of it."

Gold is also bought up as an insurance policy in tough economic times and Jeff Clark, editor of the Explorers' League at Casey Research, explained last week that now is a good time to invest in the yellow metal.

"Continue to accumulate physical gold until you can honestly say you don't care how many dollars Ben Bernanke prints," he wrote on SeekingAlpha.com.

"Having physical gold in your possession is always a good idea in times of economic turmoil - there is no 'uncertainty hedge' like it."

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