ETF Securities has claimed today (September 23rd) that major investors are Buying Gold in considerable quantities with the long-term picture in mind, Bloomberg reports.
The UK-based firm saw the amount of gold it holds to back its exchange-traded products increase by 0.5 percent yesterday to a record 8.367 million ounces.
In a new report, it explained that Gold Buying could strengthen further as investors are attracted to the metal's ability to provide a hedge against inflation and dollar weakness.
According to the news provider, one section read: "The largest buyers of gold exchange-traded commodities are institutional investors buying as a long-term hedge against inflation, dollar depreciation and other risks.
"The signal exchange-traded commodity holdings are sending is that most large investors believe these risks will continue to rise."
Meanwhile, Jason Steel, a precious metals analyst at HSBC - which is the world's largest banking group - has also provided a cautiously optimistic assessment of gold's current performance.
The yellow metal has fallen back dramatically on the two previous occasions it has passed $1,000 per ounce, but Mr. Steel believes the latest push into four-figure territory could have stronger foundations.
"Although gold has yet to challenge new highs above $1,020 per ounce, it has withstood several bouts of selling pressure," he told citywire.co.uk.
For the very best Gold Prices live online plus secure storage of your physical property in Zurich, Switzerland for one-third the cost of an exchange-traded gold fund, click through and register with BullionVault now...