Experts Believe that Gold Rally is ‘Far from Over’

Although the price of the yellow metal has seen its share of ups and downs in recent weeks, gold investors need not start panicking yet. Experts still hold that the gold rally is far from over. Given that the precious metal is a safe haven investment, investors are bound to show continued interest in it for the foreseeable future.

A Winner through the Financial Crisis

The financial crisis in several parts of the world has had an impact on the economies, industrial activity and investor confidence everywhere. While cash based assets are still clawing their way up to pre- recession levels at a very, very slow pace, gold has emerged as a clear winner. The main reason for this continued success is that cash assets have yielded practically nothing in the recent past. Since there is no clear end in sight for the global financial crisis, investors are still hesitant to take a risk with equities or stocks or bonds.

Expert Opinion from Evy Hambro

If you have invested in gold and intend to do so again in near future, you are in excellent company. Evy Hambro, manager of U.K.’s top gold fund, BlackRock Gold and General fund, assures that he is still very keen on acquiring gold in today’s date. He outlines several reasons for his lingering appetite for this precious metal:

Gold is being viewed increasingly as an alternative currency. As the fears of hyperinflation continue to sweep the market, it is inevitable that more of the investing public will start thinking in these terms, he says.

Gold has always been sought after as a hedge against inflation. Adding this metal to your portfolio keeps your investments from losing their purchasing power drastically.

Most major economies are still struggling to pull out of a negative interest rate environment. This environment is definitely not one that encourages cash based, interest yielding asset acquisitions. Gold is the asset you want to invest in given the circumstances

Since long term fundamentals are still looking up for this precious metal, there is absolutely no reason why you should not consider gold as part of your investment pan for the current year. Central banks have purchased more gold last year than they have in any other year post 1964. That alone gives you enough reason to get your share of the golden pie before prices zoom to unreachable heights.

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