Gold News

Gold Investment favoured as it 'holds its value'

A prominent figure at ETF Securities claimed yesterday (April 14th) that Gold Investment will remain strong as fears over the state of the economy are not subsiding, Commodity Online reports.

Investors have been looking to put their money into reliable physical assets as government debts continue to rise with attempts to tackle the global financial crisis.

Nicholas Brooks, head of research and investment strategy at the firm, has explained that Buying Gold has proved popular as people are seeking credit and counterparty risk.

He told the news provider: "With major central banks aggressively expanding the money supply through quantitative easing and government fiscal deficits and debt rising at an extremely rapid pace, investors are looking for assets that will hold their value if currencies depreciate or there is a sharp rise in inflation."

Gold is traditionally bought for its ability to provide a hedge against inflation and a store of wealth, and Darren Heathcote, head of trading at Investec Bank, has particularly highlighted the strength of the former trend.

In an interview with Bloomberg, he commented: "From a safe-haven stance, gold remains supported."

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