Gold Bullion viewed as paper currency alternative

Euro-priced Gold Prices have reached record levels with investors viewing the precious metal as an alternative to paper currencies.

That is according to Simon Weeks, head of precious metals at the Bank of Nova Scotia, who suggests that fears over the health of certain European economies have led investors to put their faith – and money – in the yellow metal, according to Reuters.

He told the news provider: "With gold doing well on the crosses and with good physical demand in India and China, there is still a group who are looking at gold as a currency."

Meanwhile, Hwang Il Doo, a senior trader with KEB Futures Co. in Seoul, said that the long-term future of the precious metal looked positive, despite suggestions that its price was lagging in comparison to recent buoyancy.

He said: "Gold is taking a breather after a recent good run. The metal will bounce back, though, as an improving economy hoists overall demand for commodities."

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