Gold investment will be the 'real winner' in the long term

The co-manager of a major fund at US Global Investors claimed yesterday (December 16th) that gold will be the "clear winner" when inflation takes over from deflation, Reuters reports.

Gold prices have fallen from record highs earlier this year as investors have deleveraged - getting cash by selling bullion and using it to account for margin calls and losses in other investments.

But Brian Hicks, who shares the running of the $500-million Global Resources Fund, has noted that buying gold at today's levels could offer huge rewards in the longer term.

He told the news provider: "At some point, the market is going to transition from an environment of concerns over deflation to an environment of concerns over inflation, and that's the real inflection point for gold.

"As we get out of this period of deleveraging and risk aversion, we think that the clear winner of commodities to investors will be gold."

Meanwhile, Bill O'Neill, a managing partner of LOGIC Advisors, has added his voice to the growing number of commentators championing gold investment.

He has explained that in the current financial turmoil, gold appears to be one of the few commodities to consistently retain its appeal.

"There aren't many assets that are desirable now, and gold is showing its true color as a financial asset," he commented in an interview with Reuters.

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