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Tuesday, 2nd June 2009 (1113 views)

One of the largest life insurers in the US has revealed that it is investing in gold in order to protect against problems created by the global economic downturn.

Northwestern Mutual Life Insurance has bought the precious metal for the first time in its 152-year history, Bloomberg reports.

The news source noted that gold is proving increasingly attractive to investors and that Northwestern Mutual made the move as a hedge against further asset declines.

Speaking after a conference in Brooklyn hosted by Standard & Poor's, chief executive officer of the firm Edward Zore explained the move.

"Gold just seems to make sense; it's a store of value. In the Depression, gold did very, very well," he was quoted as saying.

Meanwhile, Mann International has urged its clients to buy the precious metal, explaining that it could replace US Treasury bonds for investors looking for a safe haven for their assets.

 

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