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Friday, 22nd May 2009 (1234 views)

Demand for gold as a safe haven asset will continue to grow over the coming months, a financial markets expert has forecast.

Dan Deighan, founder and president of Deighan Financial Advisors, predicted that US stocks will plummet past lows seen last autumn during the third or fourth quarter of this year "once people see that government efforts to resurrect the banks won't work to the degree that they're expecting them to".

He explained that such a sharp drop could "really shake people up", boosting the value of gold "significantly" if the level of financial uncertainty continues to grow.

Mr Deighan suggested that investment in gold coins acts as an insurance policy against inflation and claimed that bullion is "still a good buy", even if prices do not leap in the near term.

Meanwhile, gold yields in China, the world's largest gold-producing nation, rose by 4.26 per cent to 282.007 tonnes in 2008, according to figures from Companies and Markets.

 

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