Gold is 'the only commodity than can be supported'
A major commodity analyst has claimed today (October 8th) that investing in gold appears to be the only prudent course of action in the current financial climate.
The credit crisis which has already ravaged the US financial system is now being felt strongly in Europe and is slowly manifesting itself in Middle Eastern and Asian markets.
Some commentators have described the situation as the most grave since the Great Depression, but the upshot is that investors are rushing to buy gold.
As Mark Pervan, a senior commodity analyst at ANZ, explains: "The only commodity that looks like it could be well supported in this environment will be gold as a safe haven investment."
With the bad news expected to continue despite various bailouts of financial institutions around the world, Mr Pervan's view has also been echoed by Jeffrey Nichols, managing director of American Precious Metals Advisors.
He has explained that gold is no longer viewed with caution by investors and should continue to rally as it looks to break the $1,000 per ounce barrier again over the coming months.
"The downside risks to gold seem mitigated by the strength of physical demand for investment-grade jewellery and small bars in the important gold markets of the Middle East, India, China, and other parts of Asia," he said.
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