Canadians use Gold Investment as 'hedge against rising prices'

Canadians are increasingly looking at Investing in Gold and other physical commodities as a way of compensating for recession-related rising prices.

Nick Dedes, fund analyst at Morningstar, told Canwest News Service: "During the market downturn last year, stocks went into freefall and a lot of people started to look at physical commodities as an alternative [investment].

"With people also worried about inflation down the road, gold is being sought out as a preferred hedge against rising prices."

He made his comments following news that access to the metal had expanded further in the North American country following Claymore Investments Inc's announcement that it will convert its Gold Bullion Trust into an open-end exchange-traded fund in January next year.

While Gold Investment looks set to rise in Canada, it was last week reported that China could overtake India as the world's largest consumer of the precious metal, according to Reuters.

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