Gold News

Gold Investment to increase on 'weak equity performance'

A leading investment bank has today (March 6th) suggested that Gold Investment will continue to rise in the coming weeks and months, Bloomberg reports.

Marketing body the World Gold Council revealed recently that investment in the yellow metal increased by 26 percent on a year-on-year basis during the fourth quarter of 2008.

Now a team of analysts at Morgan Stanley, led by Hussein Allidina, has explained in a new report that the ongoing effects of the financial crisis are likely to benefit people Investing in Gold.

Mr. Allidina is quoted by the news provider as saying: "We still expect market conditions to favor gold prices, given uncertainty in both global and financial markets.

"Weaker equity performance will likely encourage further gold investment."

Those sentiments were strongly echoed last week by VM Group analyst Matthew Turner, who expressed his belief that concerns over the state of the economy are likely to continue boosting gold.

"The weakening dollar will be based on fears of even more money being pumped into the economy, which is positive for gold," he told Reuters.

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