Gold News

Gold to be 'most favored investment' this year

A new survey released yesterday (February 25th) has suggested that gold will be the most favored investment in 2009.

The World Gold Council (WGC) conducted a study which found that around 60 per cent of the 31 advisors questioned believe that investors will take less risks this year.

With over $28 trillion being erased from the value of global equities in the past 12 months, Gold Investment - which provides a safe haven - looks set to increase further, according to the body.

Marcus Grubb, the WGC's managing director of investment research and marketing, told Bloomberg: "In today's market, safety and stability are at the forefront of investors' minds.

"Further de-risking [will occur due to] uncertainty over the financial landscape, combined with future inflationary fears resulting from interest rate cuts and quantitative easing by central banks."

The survey - which also revealed that 30 per cent of investors plan to be less risk-averse - placed Gold Investment ahead of investment-grade bonds and other assets.

The news comes barely a week after the WGC revealed that gold investment tripled in China over the course of 2008.

As Albert Cheng, Far East managing director for the London-based body, explained to Reuters: "Going forward, investment demand will remain robust in China because people are looking for an investment tool that they easily understand.

"It's a very good hedge against volatility in the financial markets."

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