Gold investment is 'a long-term story'
The long-term benefits of establishing a gold investment have been championed today (October 9th) by the head of a major UK broker.
The yellow metal is traditionally viewed as a safe haven in times of economic turmoil and it has been attracting investors in recent weeks with major financial systems in a state of disarray.
Now Darius McDermott, managing director of Chelsea Financial Services, has explained that buying gold will always provide a decent return in the long run in such turbulent conditions.
He told the Daily Telegraph: "I think gold is a long-term story underpinned with supply and demand drivers. Gold tends to glimmer brightest under the backdrop of shaky equities, given its traditional negative correlation to rising stock markets.
"Time after time, in financial crisis, gold is looked upon as a refuge and safe haven for distressed investors rocked by falling share prices."
Gold prices soared through the $1,000 per ounce barrier in March, coinciding with the much-publicised fall of investment bank Bear Stearns.
There has been a correction in recent months, but many commentators believe that this is nothing more than a small blip in an extended bull run, especially in the current climate.
For instance, Paul Walker, CEO of precious metals consultancy firm GFMS, said recently: "I would be surprised given the scale of the economic crisis if gold doesn't scale above $1,000."
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