The news feeds on this site are independently provided by Adfero Limited © and do not represent the views or opinions of the World Gold Council.

Tuesday, 26th May 2009 (1361 views)

Worldwide concern about inflation taking hold is likely to lead to more people choosing to buy gold, it has been suggested.

Bill O'Neill of consultancy Logic Advisors explained that the precious metal is likely to remain important to investors in the near future.

He explained that economic problems are still evident and that a "flight to safety" will be seen as a result.

Noting that inflation appears to be an "inevitable development", Mr O'Neill added: "I think demand for hard assets will continue to be strong and gold will slowly but surely benefit from that."

His comments come after Christopher Galakoutis, investor and financial commentator, told Market Oracle that inflationary expectations will increase demand for gold.

Mr Galakoutis observed that gold has "moved higher" in value, as governments are unable to hide the fact that inflation has become a reality.

And he added that new money being printed by various administrations is likely to be invested in the precious metal.

 

« Back to Gold News stories