'Others taking heed' from China's Gold Investment
A senior figure at UBS has claimed today (July 10th) that China's stance on Gold Investment underlines the appeal of the yellow metal, the Financial Times reports.
The country announced recently that it has increased its holdings of gold by about 450 tonnes in the past six years - the equivalent of roughly 15 million ounces.
Trevor Keeley, global head of sovereign client services at the Anglo-Swiss bank, explained that "others take heed" of such moves as China holds 20 percent of the world's currency reserves.
He told the newspaper: "Gold is shifting back from a sovereign reserve asset central banks were inclined to underplay to one of growing, strategic interest.
"This shift is logical; gold remains the world's primary financial asset that is no one's liability."
Those comments were strongly backed up today by Ronald Stoeferle from Austria's Erste Bank, whose Special Report on Gold has been published by Mineweb.
While he establishes that Buying Gold as a hedge against inflation is now "common knowledge", he also denies some commentators' criticism that a deflationary environment is negative for the metal.
"Seeing that in periods of deflation, cash outperforms all other asset classes, this should also apply to gold," he is quoted by the news provider as writing.
"Especially in an environment of expansive central bank policy, gold is surely a currency of highest quality and should therefore outperform the market."
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