Wanderlust…

The International Reporting (and Life) Adventures of Vivian Salama

Investors flee to gold as world economy is shaken

Posted by vmsalama on October 1, 2008

Amid the hysteria that has unfolded back in the US these last few days, a very very very small light at the end of a very long and dark tunnel….. 

Vivian Salama

The National | September 30. 2008 4:15PM 

DUBAI // Analysts are predicting that the price of gold will once again surge above US$1,000 an ounce as investors turn to the metal as a haven from market turmoil.
Gold’s status as an inflation hedge and an alternative to the US dollar has resulted in a surge of buying in the Middle East, China and Asia. 

“There is very much the possibility before the end of the year that we will see gold prices moving to four figures,” said Philip Newman, the director of GFMS, a London-based precious metals consultancy. 

“People are concerned about the banking environment, particularly as you have many names disappearing and other names rolling in with other banks. In such cases, you have this view of gold as a safe haven.”

Gold futures for December rose yesterday after US congressional leaders rejected the government’s proposed bank rescue plan. December delivery rose $5.90, or 0.7 per cent, to close at $894.40 an ounce on the New York Mercantile Exchange, driven by historic losses in the Dow Jones Industrial Average.

On March 17, the metal reached a record $1,032.70 an ounce as soaring crude oil prices spurred investors to seek protection against inflation.

Analysts say that physical gold buying will also soar.

Click here to read more…

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: