Gold investment is the 'ultimate security blanket'
A global thematic strategist claimed yesterday (December 16th) that gold is holding its safe-haven qualities as huge amounts of debt continue to filter into global markets, Reuters reports.
Although gold prices have fallen from their record levels of $1,030 per ounce in March, the impact of the US government's $700-billion bank bailout, in particular, is set to unfold over the coming months.
With that in mind, Frances Hudson from Standard Life Investments, which manages the Standard & Poor's 'A'-rated $1.1-billion Global Absolute Return Strategies Fund, has explained that gold buying is a wise strategy at present.
She told the news provider: "Gold is the ultimate security blanket. If you are expecting a raft of debt issuance then you are probably expecting a fall in their value."
Ms Hudson's view was supported last week by Richard Raymer from funds data firm Lipper, who explained that the concept of gold as a hedge against inflation is intrinsically built in to the human mind.
"However much gold has been hammered since breaking to new heights, it will always be deep in our psyches as the ultimate safe haven and will continue to crop up in the top tables during times of stress," he commented.
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