Gold News

Gold investment demand to remain strong this year

Leading French bank Natixis has suggested that demand for gold investment will stay strong for the remainder of 2008.

The fall-out from the sub-prime crisis has been felt particularly hard in the US, with the dollar experiencing a difficult period that has pushed gold prices higher.

With other factors such as the bail out of Frannie Mae and Freddie Mac and the failure of IndyMac Bankcorp coming into play, the economy may take some time to recover.

A spokesperson from the bank commented: "Support has also been encouraged by several factors, namely lower US interest rates, record dollar lows, surging oil and mounting concerns over increased geo-political risks.

"As such, the appeal of the precious metals as a safe haven, and as a dollar and inflation hedge, has continued to draw inflows from the investor community."

The bank also expressed its opinion that people investing in gold should not be concerned by the supply side of the equation, as it "is unlikely to pose much of a threat to sentiment for gold".

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