Gold News

Market woes making gold 'prime hedge' against inflation

Experts at gold refiner GC Metals have claimed that gold is truly fulfilling its role as a hedge against inflation.

Reflecting on the rush to buy gold as economic conditions have worsened, GC Metals spokesman Benjamin Godley highlighted the unique double status of gold which differentiates it from other traded goods.

"It's a physical commodity that has a monetary significance, rather than something like oil – you can't use oil as a currency, it's just a commodity."

Mr Godley identified the continued association of gold with its history, stating that "it was also the basis for a lot of monetary systems in the past", a heritage that allows the precious metal to be still regarded as a durable form of tender.

This perception of the value of gold has weighed heavily at times of potential inflation, with the current weak position of the dollar bringing further investors to gold as an anti-inflationary hedge.

"We're seeing interest rates dropping, the Federal Reserve dropped half a point, there's a fear of inflation rushing back into the economy, so gold's becoming one of those hedges against inflation" said Mr Godwin, summing up the recent rise of the metal.


See all articles by Gold Bug here.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn



Market Fundamentals