An analyst at CMC Markets suggested on Friday (March 6th) that all the necessary factors are in place to support anyone Investing in Gold, Reuters reports.
According to the latest edition of the Economist, the US will need to borrow $1.75 trillion over the course of the 2009 financial year, while European countries may require up to $1 trillion.
With investors subsequently Buying Gold as a safe-haven asset in such troubled times, the firm's currency strategist Ashraf Laidi believes the yellow metal is set to continue performing strongly.
He told the news provider: "The fundamental argument [for gold] is bolstered by the currency implications of central banks' quantitative easing and bank stocks' accelerating damage."
Indeed, that view was also expressed recently by Warren Buffett - generally recognised as the world's richest man - who predicted that gold may benefit from an "onslaught" of inflation.
According to Reuters, he wrote in an annual letter to his Berkshire Hathaway shareholders: "These once-unthinkable dosages will almost certainly bring on unwelcome after-effects.
"Their precise nature is anyone's guess, though one likely consequence is an onslaught of inflation."
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