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Monday, 27th April 2009 (1672 views)

A sluggish forecast for the global economy from the International Monetary Fund (IMF) could push up gold investment, according to an expert.

Chen Yonglin, an analyst at Citic Securities, told Bloomberg that investors in Asia were turning to the precious metal in order to protect their investments.

"Gold's fortunes will continue to be tied to the equities market for now," he stated.

The IMF has predicted that the global economy will contract during 2009 by 1.3 per cent, revising an earlier forecast of 0.5 per cent expansion made in January.

Independent financial advisor Andrew Farr recently wrote in the Western Mail that gold has retained its allure since the foundation of the first empires and can add "sparkle" to portfolios.

In other news, China has announced that it has increased its gold reserves by 75 per cent to 1,054 tonnes since 2003, making the country the world's fifth largest holder of gold bullion.

 

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