Gold 'has held up better' than rival investments
An analyst at Archer Financial Services has explained that gold has retained its value and appeal far better than its rival commodities during the current global economic turbulence.
The yellow metal is traditionally viewed as a source of safe-haven wealth and a hedge against inflation when times are tough as it tends to track in the opposite direction to the US dollar.
Now Stephen Platt, a commodity analyst for the Chicago-based firm, has expressed his belief that investing in gold is a wise strategy as doubts over the future of the economy are persisting.
He said: "Gold has held up better than any asset off the uncertain monetary outlook. The dollar seems to be under a lot of pressure and there's still uncertainty to the economic outlook, and that's giving a lift to gold."
The view that gold has outperformed other commodities since the start of the credit crunch was backed up recently by Jeffrey Nichols, managing director of American Precious Metals Advisors.
Speaking at the recent China Gold and Precious Metals Summit in China, he commented: "In spite of the lack of direction and day-to-day price volatility in the gold market this year, at least we can say that no other asset class has held its value quite so well."
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