Precious metal provides safe haven for investors

| 10/09/2009

(Reuters): Gold broke through the $1,000-an-ounce barrier this week, and many on Wall Street believe it can keep going higher. Traditionally, investors have viewed gold as a "safe haven" in times of economic uncertainty, and analysts have no reason to believe it is any different in the current recession. Despite signs that the economy is clawing its way back, the dollar remains weak and inflation fears are rife, and investors are looking for reliable places to put their money. "One of the reasons why the gold rally has been so strong is because it is not just an inflation story, it is not just a dollar story," said Jeffrey Christian, managing director of New York-based commodities consulting firm CPM Group.


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  1. Frank says:

    I could not agree more:

    In 1971, Gold was worth $35.00 an ounce when its peg with the Dollar was ended by Nixon: in 38 years, it has risen 2,857% to $1000.00 in relation to the Dollar, which has lost 96.5% of its value in the same time frame.

    That’s the proof in the pudding that Gold is a far better investment than the US Dollar, particularly in a low interest environment…