More people investing in gold during economic turmoil

Share market turmoil prompted investors to buy US$2.8 billion worth of gold on world stock exchanges in the third quartile of 2008, it has been revealed in the Independent.

Figures released by the World Gold Council (WGC) show that by purchasing 145 tons of gold on bourses over July, August and September, stock exchange investors ensured they held over 1,000 tons for the first time since gold was made available on the US stock exchange in 2004.

According to Natalie Dempster, head of investment of the WGC, the economic downturn has convinced investors that buying gold is the safest option.

"The question we get from high net worth individuals and funds is no longer 'why should we invest in gold?', but 'where can we go to buy it?'" she questioned in the Independent.

Gold has also been made more of a viable investment option by today's (Monday, October 20th) crude oil prices upturn and a weaker dollar in relation to the euro.

Many traders are also being tempted by the current low price, Reuters reports, as they expect the price to rise in the future.

The strong performance of gold has had a beneficial impact on other metals, with the price of platinum increasing by eight per cent today despite fears of slower economic growth in the US.

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