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Wednesday, 15th April 2009 (1237 views)

Recent decisions made by the G20 countries and the International Monetary Fund (IMF) could benefit gold investors, an expert has predicted.

Writing for the California Morning Star, Steven Kelman explained that economic stimulus packages could push up inflation rates around the world.

He stated that under such circumstances gold could provide the "appropriate hedge" for investments.

"Gold has historically been a good choice as a hedge against inflation and is the primary store of wealth in many cultures," the investment counsel and president of Steven G Kelman & Associates explained.

Mr Kelman added that asset classes such as gold tend to perform well during inflationary periods and most countries use the precious metal as part of their foreign exchange reserves.

Following their recent summit, the G20 nations announced that they will invest around $5 trillion in their economies by the end of 2009.

Precious metals research consultancy GFMS recently suggested that the price of gold may rise to as much as $1,100 (£750) per ounce during 2009.

 

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