Gold Investment 'fuelled by fear of government borrowing'
Investors are increasingly Buying Gold with a view to the long term because of fears over how governments intend to tackle their mounting debt levels, it has been claimed.
According to an analyst at Bullman Investment Management, a global hedge fund based in the UK city of Bath, increased government borrowing through bond issues is turning investors onto the yellow metal.
Speaking to Reuters, Nick Bullman, managing director of the group and someone who has previously worked at Goldman Sachs, highlighted the rising prominence that he believes Gold Investment will have moving forwards.
"Long-term investors are beginning to realize that gold is the only thing that is going to protect you from governments who decide that the way out of this problem is to borrow more," he told the news provider.
The US Federal Reserve's decision to hold interest rates at their current level is also likely to boost Gold Prices while undermining the value of the US dollar, a Hong Kong dealer told Reuters.
"Investors are buying back gold after the Fed decided to keep interest rates unchanged," he said.
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