Gold 'investment of choice' during economic uncertainty

Stock market volatility means that it is currently a good time to buy gold, according to a leading precious metals company.

A statement from Lear Financial concedes that gold prices have not reached a new high for 14 months, but stresses that gold's 65-week moving average is $642.

Kevin DeMeritt, president of Lear Financial, has argued that owning gold currently makes perfect sense, particularly for those hoping for long-term, secure investments.

"Gold prices are up over the past six years and gold experts suggest that it will continue to increase," Mr DeMeritt said this week.

"Investors typically turn to gold when there is economic uncertainty or world instability such as war. Individual investors and countries are starting to turn to gold."

He suggested that gold functions as a "reassuring insurance" against economic uncertainty.

"Since gold tends to move contrary to the ocean of paper investments most of us possess, it will always serve a wonderful purpose for the wise, diversification-minded investor."

The Lear Financial statement refers to widespread reports that Russia, Argentina and South Africa are all buying gold for their reserves. It also observes that gold prices could skyrocket if China was to increase its holdings.

According to Reuters, spot gold reached $663 on Thursday, up from $659 late on Wednesday in New York.