Uncertainty produces golden opportunities

I'm often asked, "What do you think about gold?" Until a few years ago, I would have replied that it was a relic of the past and not worthy of the attention of a serious investor. These days, I am not so sure.

In my view, the interest in gold is due to the concerns of some investors that the major economies of the world, the US and the Euro zone, are going to turn on the printing presses. These people see gold as a store of value that will maintain its purchasing power if this comes to pass.

Ian Glass writes for the Herald Sun 14/09/2011

A discussion about whether gold is in a bubble or not is a topic that draws strong views around our dealing room.

The sceptics point to the fact that (excluding Australia) core inflation is quite subdued, notwithstanding the two rounds of quantitative easing in the US and that gold has spent the past decade getting steadily more expensive relative to everything else.

To read the full article, click here