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Thursday, 5th March 2009 (1467 views)

Purchasing gold provides investors with the "reassurance of holding something physical", according to an expert.

Writing for Mining MX, Helena Wasserman suggested that gold is a "merry little corner of the market", despite the global economic downturn.

She claimed that markets remain tense and gold prices could exceed a record of $1,030 (£732.78) set last year, as it tends to do well when share prices fall sharply.

Ms Wasserman pointed to limited supplies and rising demand as key reasons for the sharp increases in gold prices over recent months, adding that central banks are holding on to gold stocks as a result of financial markets volatility.

The financial columnist explained that booming developing economies such as India and China had also pushed up demand for gold jewellery.

According to the Chicago Sun Times, gold is "glittering" during the current economic climate and investing in the metal over the long term tends to be a "reliable" way to store funds.

 

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