The founder of a major fund manager expressed his belief on Monday (February 9th) that people are increasingly Investing in Gold as a hedge against impending inflation, Reuters reports.
Official statistics - in the shape of the growth of money supply - recently revealed the possibility of inflationary pressures, with January M1 up 20 percent year-on-year in the US in anticipation of president Barack Obama's $800 billion stimulus plan.
Now Angus Murray, who established Castlestone Management, has explained that investors are aware of the imbalance and are looking to Buy Gold as an insurance policy.
"People need a real asset to offset inflation," he told the news provider.
"Investors are putting gold into their portfolios as an insurance policy. In 24 or 36 months time, gold will be higher by a minimum of the growth rate in money supply."
That view was echoed recently by Frank McGhee, head precious metals trader at Integrated Brokerage Services, who suggested that investors are turning to gold for its safe-haven appeal.
"There is major safe-haven buying in gold. We are seeing gold appreciate against all currencies," he told Reuters.
"The gold market is certainly anticipating a much bigger systemic problem down the road."
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