Central banks turned net purchasers of gold in 2010,and that trend has continued,said Natalie Dempster of the World Gold Council.Stimulative policies are pushing investors into gold,along with the fiscal cliff.Concerns over credit have stopped the trend of investing in eurobonds.
Strong economic growth has been underpinning jewelry and central bank gold reserves demand from countries such asThailand and Russia.It's really been very broad-based.
At the moment,gold is a very good inflation hedge.It's a much better diversifier than other commodities because they are linked to industrial applications.
Monday New York gold closed at 1728.80 an ounce.
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