The largest lender in South Africa claimed yesterday (March 9th) that Investing in Gold is set to remain a prominent component of market activity in the future, Reuters reports.
Gold Prices have fallen back down towards $920 per ounce in the past few days after breaking through the psychological $1,000 per ounce barrier towards the end of February.
Now Standard Bank has explained that in the current economic climate, currencies such as the dollar - which tends to move in the opposite direction to gold - are likely to continue to suffer.
In a note quoted by Reuters, the bank said: "While the financial environment remains poor and a number of currencies struggle under the weight of bloated balance sheets, gold is expected to remain an important element in portfolio management at the personal, professional and central bank level."
Those sentiments were strongly corroborated last week by Mark Rush, professor of economics at the University of Florida, who suggested that gold's rise can also be related to the weakness of other assets.
"People are concerned about what's going on in the financial markets, and they're looking for a place to put some money," he told Palm Beach Daily News.
"They're concerned: 'Gee, I don't want to go into the stock market because look what's been going on there'.
"'I don't know if I want to go into banks because the banking system looks weak and it might get nationalized and what's that going to do for my money? And so gold's maybe a place I could put it in'."
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