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Monday, 9th February 2009 (1528 views)

Despite gold prices being at record highs, investors are increasingly putting their money in the precious metal, an expert has claimed.

UBS strategist John Reade told the Times that the economic downturn and global currency fluctuations have pushed up sales of physical gold.

He explained that purchases of gold had "jumped over the past six months as investors' fears about the financial crisis and the possible outcomes from government efforts to support banks and economies have intensified".

UBS has increased its forecast for gold prices, stating that they could reach an average of $1,000 per ounce during 2009, as prices have continued to rise during the economic downturn.

A new report by London-based research firm GFMS has predicted that demand for gold bars will rise by 49 per cent to 201 tonnes during the first half of 2009, compared with the same period of 2008, while gold prices could reach a record high.

 

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