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Wednesday, 3rd June 2009 (1131 views)

Investors in the US are turning to gold in order to protect their assets, it has been noted.

Axel Merk, a portfolio manager at California-based Merk Hard and Asian Currency Funds, told Reuters that he considers the precious metal to offer protection against inflation.

Interest in gold grew in late 2008 in response to fears of recession and financial insecurity.

But now it is the falling value of the dollar that is prompting concern and Mr Merk explained that he believes the currency's purchasing power will be "substantially less" ten years from now.

"Gold is ... the simplest way to play the devaluation of the dollar and potential inflation," he said.

His comments come after Mann International advised that the precious metal can act as a safe haven for those who do not wish to invest in US Treasury bonds, with the firm recommending that its clients buy gold.

 

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