Gold News

Gold Investment being driven by economic fears, says analyst

The editor of a well-respected precious metals newsletter claimed yesterday (September 3rd) that investors are rushing to Buy Gold for its safe-haven status.

James di Georgia, who produces Gold and Energy Advisor, is an experienced gold analyst whose views are often quoted in leading publications such as the New York Times and USA Today.

He explained in an interview with that concerns over the massive US spending during the recession are persisting and will eventually see Gold Prices increase to about $1,200 per ounce.

"When you have such a large part of US population convinced we're running to hell in a handbasket with federal spending, you're going to have a large part of the population buying and taking possession of gold out of fear of what's going on," he told the news provider.

Investors also turn to gold when supplies of the yellow metal are diminishing as this naturally tends to increase demand and therefore push prices higher.

Last week, Harmony Gold, which is the world's fifth-largest gold producer, suspended operations at its Doornkop mine in South Africa after a worker died in an accident involving a conveyor belt.

When incidents of this nature force the closure of mines, production is inevitably impacted.

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