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Gold Investments Unanimously Top Investors’ Portfolios

June 15, 2010 - With public finances not looking so good, weak economic growth, sovereign debt concerns and worries about the major currencies, gold investments are the order of the day as a safe haven. GoldCore, a Dublin-based broker, issued an official report to endorse this position. The impending threat of inflation in Europe, combined with its debt issues, drove investors to gold investments, particularly now as gold is steady and strong.

It appears to be the ideal environment for gold’s popularity, considering the five-month low in U.S. homebuilding and a warning from FedEx, both of which determine the health of the overall economy. On Wednesday, spot gold bid at $1,232.65 an ounce compared to Tuesday’s $1,232.45. Daniel Smith, analyst at Standard Chartered, feels that the primary focus is liquidity, since investors are buying gold as well as other assets.

Gold prices are just one percent away from the record high of $1,251.20 last week. Since the global economic situation seems risky now, investors view gold bullion as a safer option. The interest in physical gold investments reached an all-time high on Tuesday, resulting in a record holding of 1,306.137 tons at the SPDR Gold Trust in New York.

Ole Hansen, senior manager at Saxo Bank in Copenhagen, said that the sovereign debt situation will continue, and because of the “fear that some of the government debt in Europe will have to be readjusted,” it will “support” gold investments. He also said that it is easy to “drive gold higher” even as summer arrives, when “anything can happen” because of low seasonal activity and a precarious market.

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Stewart Lawson

Senior Staff Writer - Gold-Investment.info