Thursday, April 9, 2009
Will gold fall further this year?
Gold may reach a record this year as demand for a hedge against inflation outpaces an expanding scrap supply and weaker usage by jewellers, according to researcher GFMS. "You can't just increase supply of money like that and not expect there to be some consequences in terms of its value against a yardstick such as gold, the supply of which is increasing by about 1pc a year," said GFMS Chairman Philip Klapwijk. "That's going to start to worry investors as much or more than the security of their banks or financial instabilities."