The gold price
Investing in Gold is a 'natural hedge' in times of economic uncertainty - 19 May 2009
Gold is a "natural hedge" against inflation and dollar weakness but people Investing in Gold should not expect to make substantial returns in the short run.
According to Adrian Lowcock, senior investment adviser at Bestinvest, the yellow metal instead needs to be viewed as a long-term proposition.
In an interview with the Independent he said that gold holds continuing appeal as a safe haven in times of economic uncertainty.
Gold prices can be expected to rise as a reaction to high inflation rates or the decline of the dollar.
Despite this, he suggests that those looking to make a short-term profit could be left disappointed - intimating that Gold Investing is better disposed to those taking a longer-term view.
"Gold is a natural hedge against inflation and currency volatility," he told the news provider.
"However, the price of gold can move significantly and therefore short-term investors can still make a profit - or more importantly - a loss from investing in gold and should not treat it as the safe haven it is often described."
Last week (May 12th), Jan Loeys, global head of marketing strategy at JP Morgan Chase & Co, told Bloomberg that gold prices could hit $1,300 per ounce in 12 months' time.
"Over the next year or so, we think we are going to be crossing $1,000, probably going ultimately to $1,200, $1,300 just for inflation hedging and lack of supply," he said, the news provider reports.
Looking to Buy Gold today? For direct access to live Gold Market prices – and to save up to 80% compared with coin dealers' fees – click through to BullionVault now...
According to Adrian Lowcock, senior investment adviser at Bestinvest, the yellow metal instead needs to be viewed as a long-term proposition.
In an interview with the Independent he said that gold holds continuing appeal as a safe haven in times of economic uncertainty.
Gold prices can be expected to rise as a reaction to high inflation rates or the decline of the dollar.
Despite this, he suggests that those looking to make a short-term profit could be left disappointed - intimating that Gold Investing is better disposed to those taking a longer-term view.
"Gold is a natural hedge against inflation and currency volatility," he told the news provider.
"However, the price of gold can move significantly and therefore short-term investors can still make a profit - or more importantly - a loss from investing in gold and should not treat it as the safe haven it is often described."
Last week (May 12th), Jan Loeys, global head of marketing strategy at JP Morgan Chase & Co, told Bloomberg that gold prices could hit $1,300 per ounce in 12 months' time.
"Over the next year or so, we think we are going to be crossing $1,000, probably going ultimately to $1,200, $1,300 just for inflation hedging and lack of supply," he said, the news provider reports.
Looking to Buy Gold today? For direct access to live Gold Market prices – and to save up to 80% compared with coin dealers' fees – click through to BullionVault now...
Goldbug, 19 May '09
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