Gold News

Market 'losing faith in paper currencies'

Experts are now lining up to predict a bright future for gold, as factors continue to converge in favour of an ever-higher price.

The Daily Telegraph has thrown its weight behind predictions of a further bull run for the precious metal, claiming that the US treasury's sub-prime fall-out response looks to have failed.

Continued market instability has left investors avid to buy gold and other safe-haven stocks, explained the newspaper, with experts underlining the potential consequences of the ensuing fall of the dollar.

Hans Redeker, currency chief at BNP Paribas told the Telegraph: "We're seeing a loss of confidence in all paper currencies, but above all in the dollar."

The increased numbers buying gold as an alternative to dollar-based investments has lifted the metal's price above $840 per ounce, with gold prices reacting in phase with the greenback's slippage to record lows against the euro.

Attempts to rejuvenate the economy by the US Treasury involved a big money plan for bolstering sub-prime mortgage securities against the risk of large-scale downgrades, but the sector still remains highly troublesome.


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