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Monday, 28th September 2009 (3250 views)

Investing in gold could potentially act as a financial insurance policy, it has been claimed.

The economic downturn and weakness of several global currencies, including the dollar, means gold may be a good option when looking for monetary security, according to Lawrence Williams.

Writing for Mineweb, he pointed out that factors such as employment levels, housing, lending and sales are all still feeling the effects of the financial crisis meaning that investing in other commodities could potentially carry a risk.

Gold, however, should still be "seen as an investment insurance policy", the author posited.

"Investment in gold may provide the only kind of security there is against a possible new meltdown," he wrote.

Mr Williams went on to state that more and more smart money may be ploughed into the precious metal, which, to date, has been the cause of its steady price increase, despite the predictions of experts in the field.

Earlier this year, the gold specialist explained that assessing overall market trends with regard to the yellow metal is more important than watching the day-to-day fluctuations, when it comes to determining the investment potential.

 

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