Gold News

Inflation in US 'will increase appeal of gold'

An investment strategist has urged people who may be putting off a gold investment to reconsider, pointing out that the "bull market" is not yet over.

Kenneth Gerbino, writing for Commodity Online, said that recent news that gold has consolidated at around $850 to $900 an ounce may be putting some investors off.

However, he said that this should not necessarily be the case.

Mr Gerbino cited the example of crude oil, saying that if this commodity is strong, then economics state that gold prices may soon match it.

Rapid inflation and the liquidation of Bear Stearns earlier this year were also mentioned as factors which could support gold prices in the coming months.

"Gold will respond like other commodities in the coming grand cycle commodity bull market. But these metals are also possible currency substitutes that cannot be wiped out by a bank run or a printing press. This will have increased appeal as we move further into more of a paper money-crazed world," he said.

The price of gold hit an all-time high in March 2008, when it hit over $1,000 an ounce.

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