The news feeds on this site are independently provided by Adfero Limited © and do not represent the views or opinions of the World Gold Council.

Monday, 9th March 2009 (1443 views)

Gold is becoming a more attractive option for hedge fund investors in the current economic climate, it has been suggested.

Investors have reported that Eton Park, TPG-Axon and Greenlight Capital are all interested in the precious metal, the Financial Times reports.

According to the founder of hedge fund Greenlight Capital, David Einhorn, the US Federal Reserve's balance sheet is "exploding" and investing in gold is likely to be a wise move.

"Our instinct is that gold will do well either way: deflation will lead to further steps to debase the currency, while inflation speaks for itself," he told the paper.

Furthermore, chairman of Barrick Gold Peter Munk added that the commodity is in a strong position following policy decisions by governments in all countries.

These comments follow suggestions that the price of gold could exceed record prices this year.

Writing for Mining MX, Helena Wasserman stated that the precious metal provides investors with the "reassurance of holding something physical".

 

« Back to Gold News stories