Gold News

Investors 'pouring into gold' across the globe

Marex Financial Ltd claimed yesterday (February 12th) that investors are currently Buying Gold in huge quantities for its safe-haven qualities, Bloomberg reports.

People generally tend to Buy Gold - which has historically moved in the opposite direction to the US dollar - as an alternative investment to paper currencies such as the greenback.

In addition, investment in the yellow metal increases in tough economic times as it provides a store of wealth - a trend which is currently growing rapidly, according to the London-based broker.

"Investment from the broader global market is still pouring into gold as a hedge against global uncertainties," the firm commented, in a note quoted by the news provider.

Some commentators have suggested in recent weeks that gold prices will be affected by a period of deflation, but it would appear that investors are more concerned about the prospect of inflation.

David Thurtell, an analyst at Citi, the second-largest financial institution in the US, highlighted last week that people are attracted to the long-term appeal of investing in gold.

"We are seeing more investor interest in gold," he told Reuters.

"Some like it as a safe haven in times of high economic uncertainty, and others like it as a hedge against inflation.

"While deflation is the short-term threat, there is a concern that all this monetary and fiscal stimulus will eventually cause inflation to explode."

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