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Wednesday, 20th May 2009 (515 views)

Continued fears over inflation have helped the appeal of investing in gold to remain strong, it has been suggested.

Many investors see the precious metal as a hedge against inflation and the current weakness of currencies such as the US dollar mean a growing number of people are choosing to purchase the precious metal.

"Gold is inching up a bit because of inflation worries," Ronald Leung, director of Hong Kong-based Lee Cheong Gold Dealers, told Reuters.

He added that concerns over quantitative easing methods being introduced by governments around the world are helping to convince investors to purchase the precious metal and predicted that the trend may be set to continue.

Earlier this week, Adrian Lowcock of BestInvest told the Independent that gold is seen as a "safe haven" during financial uncertainty, as its price will increase to compensate for rises in inflation - making it an attractive option for many buyers.

 

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