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Inflationary fears 'will prompt more Gold Investment'

A prominent fund manager suggested on Friday (May 8th) that Gold Investment is growing in popularity as people anticipate inflation in the coming months, Reuters reports.

The yellow metal is traditionally viewed as an alternative investment and is bought for a number of reasons, but its safe-haven qualities have shone through during the economic crisis.

But with growing sentiment that the worst may be over, Caesar Bryan, who manages about $450 million at GAMCO Gold Fund, explained that Buying Gold as a hedge against inflation is taking over.

"We seemed to avoid that fear about the financial meltdown," he told the news provider.

"Now, people are looking forward through the valley of this economic crisis and thinking maybe the problem is going to be too much inflation because we are creating too much money."

That view was echoed by Jeffrey Christian, managing director of New York-based firm CPM Group, who noted that previous concerns over a period of deflation have been subsiding of late.

"Investors have been focusing on that the recession may be bottoming out and we are moving toward an economic recovery," he told Reuters.

"There is a greater concern about inflationary implications of all the stimulus packages and less concern about deflation."

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