Long-term fundamentals for Gold Investment 'remain strong'
The largest publicly-traded US asset manager has suggested today (April 21st) that the fundamentals for long-term Gold Investment are still very much in place, Bloomberg reports.
Investors tend to favour the yellow metal in times of economic turmoil as it offers a store of wealth and an alternative to paper currencies such as the dollar.
Now BlackRock Inc has given anyone contemplating Buying Gold a positive sign after noting in a weekly report that demand looks set to remain intact, while the future on the supply side is less certain.
"Long-term fundamentals remain tight, with little sign of any oncoming supply glut," it was quoted by the news provider as writing.
"On the demand side, the rising wealth of emerging economies is likely to support jewelry demand whilst the ongoing financial turmoil and inflationary pressures are likely to continue to stimulate investment demand."
Nicholas Brooks, head of research and investment strategy at ETF Securities, echoed that view last week, explaining that investors still favor gold as it looks set to hold its value for the foreseeable future.
"With major central banks aggressively expanding the money supply through quantitative easing and government fiscal deficits and debt rising at an extremely rapid pace, investors are looking for assets that will hold their value if currencies depreciate or there is a sharp rise in inflation," he told Commodity Online.
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