WGC: Gold Investment is best in periods of inflation

The World Gold Council (WGC) claimed today (July 15th) that Investing in Gold now will prove to be a sound strategy if an inflationary period engulfs the global economy.

A new study released by the marketing organization, which is funded by gold mining companies, considered the relative performance of gold, other commodities, real estate and inflation-linked bonds.

The WGC authors, North American investment head Natalie Dempster and investment research manager Juan Carlos Artigas, concluded in the report that Gold Investment could represent the best inflation hedge in some cases.

"If inflation does materialize, then traditional inflation hedges like gold, commodities, real estate and inflation-linked bonds are likely to outperform other mainstream financial assets," they wrote, according to the Wall Street Journal.

"Gold not only performed best in terms of real returns during high inflation years, it also delivered a better risk/return profile."

Meanwhile, respected Wall Street commentator and economist Peter Schiff claimed last week that gold is the best place for investors to put their money in the current economic climate.

In an interview with Business News Wire, he explained that paper currencies are unlikely to hold much appeal as the huge accumulation of debt in response to the financial crisis begins to unwind.

"The only solution to the economic problems that we have today is a return to sound money … The world is ultimately going to have to move away from the 'Dollar Standard' and back their currencies with something real," he told the news provider.

"I think gold is the best thing to use. Gold has been money for 5,000 years. I think that gold is going to go to many thousands of dollars an ounce. I'm not exactly sure how high but I think it will be a spectacular run."

Want to Buy Gold but unsure how to do it? For dealing spreads of $3 per ounce – plus secure, professional storage in Zurich, Switzerland for just 0.12% per year – click through to BullionVault now...