15 June 2006

Why Arabian investors should buy and hold gold! | Financial Planning

Why Arabian investors should buy and hold gold! | Financial Planning: "Arabian investors should be piling into gold at these price levels. For the recent rout of gold prices is entirely down to a concerted attack on gold by the central banks, and the fundamental factors supporting the gold price have got stronger and not weaker.

First, the US dollar is weakening against most currencies. This is supportive of gold which is priced in US dollars. Most currency analysts now believe the dollar is heading lower, and that will keep the gold price rising at least in dollar terms.

Secondly, inflation is now re-appearing all over the world as a menace to economic growth and capital market stability. Gold is the classic 'safe haven' investment and a hedge against inflation.

Safe haven status
Therefore, Arabian investors who want to preserve their wealth in this environment should buy gold and not equities or bonds whose future is much more open to doubt. Indeed, the weakness seen on global capital markets in the past month may be just a sign of days to come, perhaps this autumn, with a full scale financial crisis"

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