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Thursday, 2nd July 2009 (826 views)

Gold companies are benefiting from the increased demand for the precious metal that has come about as a result of the economic crisis, according to one expert.

Tim Morris, equity analyst at Wise-Owl, told the Sydney Morning Herald that "genuine inflation concerns" could be the main cause of sustained interest in gold.

As a result, he noted, production firms are able to increase their efforts and in some cases double the amount of ore being processed.

He pointed to the example of Medusa Mining in the Philippines, a small company that has been performing well of late.

"Apart from gold, they have so much ground in the Philippines and it's showing promising exploration potential," Mr Morris was quoted as saying.

Jay Johnson, former director of the US Mint, recently urged investors to consider buying gold coins, stating that holding a range of assets is important and emphasising the benefits of the precious metal.

 

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