Gold News

Gold investment rising as banks 'fall to Big Brother'

An analyst at Heritage West Futures Inc explained yesterday (September 29th) that the plight of banks around the world is spurring gold investment.

Since the subprime mortgage crisis began around a year ago, banks and brokers have had to withstand almost $600 billion in credit losses and writedowns as they tighten their purse strings.

Bailouts appear to be the order of the day, with Citigroup buying Wachovia Corp's banking operations and governments rescuing Bradford & Bingley, Fortis and Hypo Real Estate Holding AG.

Now Ralph Preston, from San Diego-based Heritage West, has commented: "Gold is catching a bid as concerns spread that the global financial system is walking on pins and needles as banks worldwide continue to fall into the pockets of Big Brother."

The situation is leading many investors to rush to gold for its safe-haven qualities and the lack of alternative investments elsewhere.

Although some commentators have suggested that this could be a short-term fad, the World Gold Council (WGC) reported recently that investor have doubled their gold bullion assets in the past two years.

And as Miguel Perez-Santalla, a sales vice-president at Heraeus Precious Metals Management in New York, explained, there is no reason for this trend to be reversed in the current climate.

He said: "Gold will continue to hold its value as investors value protection as the key in these turbulent times."

Investing in Gold? For the cheapest, fastest & most secure route to solid Gold Investment simply register for a free, no-obligation account at BullionVault now...


See all articles by Gold Bug here.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn



Market Fundamentals