Gold investment buoyed by 'ongoing' concerns over financial crisis

A senior figure at the Royal Bank of Scotland (RBS) explained on Friday (November 28th) that he expects gold investment to remain strong in the coming months.

Despite considerable volatility in recent weeks, the gold price made its largest monthly gain for nine years during November as investors continued to fret about the effects of the global financial crisis.

Now Stephen Briggs, a global banking and markets metals strategist at the bank, which is the largest institution controlled by the UK government, has claimed that investing in gold is seen as a sound approach.

He said: "Investment (in gold) is strong because there is huge concern over the economic and financial environment, both in the short and possibly the longer term.

"The measures being taken to stabilise the situation may lead to inflationary fears down the road, so gold has a double benefit from that."

Mr. Briggs' sentiments have been echoed by Dan Smith, an analyst at Standard Chartered, the UK's third-largest bank by value, who is also positive about the long-term prospects for gold.

"We are quite bullish for gold in the long term, primarily because we see the dollar weakening substantially on all this liquidity being pumped into the system," he said.

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