A prominent fund manager claimed on Saturday (September 26th) that investors are rushing to Buy Gold as they seek a store of wealth, the Daily Mail reports.
The yellow metal has been a popular asset during the financial crisis and subsequent recession, gradually gaining in price as major paper currencies have floundered.
Now Evy Hambro, who manages approximately £1.7 billion in the BlackRock Gold and General investment fund, has explained that the trend looks set to continue.
"First it was fear of recession and now it is fear of inflation and worries over the weakness of the US dollar," he said.
"People are looking for gold as a currency that can preserve their purchasing power over time."
Investors often Buy Gold as a hedge against inflation and this attraction was adhered to last week by David Levenstein, an investment advisor with 29 years' trading experience.
Speaking to Mineweb, he noted that many market observers believe gold prices will increase in the longer term as inflation takes over when economies begin to recover.
"While there is no evidence of inflation at the present moment, there are a number of factors suggesting an inflationary environment for the near future," he told the news provider.
"They include the monetary policies of central banks, major tax cuts, a long-term decline in the dollar, a mammoth trade deficit in the US and America's status as the world's biggest debtor nation. This implies that gold [will] rise over the long term."
This article taken by bullionvault.com.
