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Monday, 16th February 2009 (1734 views)

Gold markets continue to rise during the global economic downturn and could "spur symptoms of gold fever", a newspaper has suggested.

According to an article in the Las Vegas Review-Journal, investors are seeking a safe place to put their money, as equities could continue to fall in the US.

John Dobra, an economics professor at the University of Nevada, Reno, told the publication: "If you're asking why gold prices are going up while other things are falling, my standard answer is 'fear'."

He pointed out that the bailout of US banks could push up inflation, potentially rewarding gold investors and benefiting the Nevada mining industry.

The article noted that the prices of six leading gold mining companies have risen by at least 44 per cent between November 2008 and now.

In other news, US Global Investors portfolio manager Ralph Aidis recently told Mining Weekly that he would "not be surprised" if gold prices continued to rise, potentially reaching $2,300 (£1,583) per ounce as a result of growing demand.

 

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