Citi analyst David Thurtell claimed yesterday (February 5th) that Gold Investment is on the rise as people seek a store of wealth in the current economic climate, Reuters reports.
Gold Prices jumped by 1.5 percent yesterday after the Bank of England announced that it was cutting the base rate of interest to one per cent, the fifth reduction in as many months.
However, Mr. Thurtell has explained that investors are looking at gold for the longer-term picture as it provides them with a safe place to put their money as worries over inflation continue.
He told the news provider: "We are seeing more investor interest in gold. 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."
Those comments were backed up last week by Afshin Nabavi, senior vice-president at Swiss bullion refiner MKS Finance, who explained that the raft of bad news in the financial markets is pushing people to buy gold.
"We are only hearing bad news across Europe, the US and the Far East. The only thing left is gold," he told Bloomberg.
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