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Monday, 16th November 2009 (5040 views)

An increased interest in gold investment is not a short-term trend, but instead could represent a new age of international currency, according to a RBC Wealth Management adviser.

Peter Lucas, an investment strategist with the organisation, told the FT Adviser that as foreign currencies have begun to appreciate against the dollar - due in part to spending by the US government that may have undermined confidence in the currency - the world is turning to gold as a reserve instead.

Real assets have been used as reserves for years, he added, pointing out that a move by France in 1971 away from US dollars was followed years later by China and India.

He added that India's purchase of 200 million tonnes of gold at the recent International Monetary Fund auction represents "just a taste of what is to come".

Gold investment was recently described as a "bright light" for those seeking a safe haven during the current market instability by a senior analyst for World Gold Group.

James Purcell said the fact the price of the precious metal has soared during the last 12 months is testament to its popularity as an investment product.

 

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