A prominent US professor claimed on Saturday (February 28th) that people are Investing in Gold as they cannot see the value in any other investment at present, Palm Beach Daily News reports.
Gold Prices have cooled to around the $930 per ounce mark in the past few days after breaking through the $1,000 per ounce barrier recently for the first time since March 2008.
Now Mark Rush, professor of economics at the University of Florida, has explained that Buying Gold is providing a store of wealth at a time when the financial crisis is damaging other assets.
He told the news provider: "People are concerned about what's going on in the financial markets, and they're looking for a place to put some money.
"They're concerned: 'Gee, I don't want to go into the stock market because look what's been going on there.
"I don't know if I want to go into banks because the banking system looks weak and it might get nationalized and what's that going to do for my money? And so gold's maybe a place I could put it in'."
Professor Rush's comments come after UBS strategist John Reade claimed last week that gold prices could go as high as $1,200 per ounce in the first half of 2009.
"To average that in the first half of the year, you could make a case for gold going up to $1,200, perhaps more. [Investment demand is] the only thing in the market at the moment," he told Reuters.
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