Kyobo Securities has today (March 23rd) suggested that now is the perfect time to make a gold investment as the yellow metal looks well-placed for further rises, the Korea Times reports.
Gold Buying has been on the increase for some time now as investors continue to fret over short-term assets and look for a safe haven amid the ongoing economic turmoil.
Now the Seoul-based firm has advised that gold should form part of any longer-term portfolio as the likelihood is that inflation will return with a vengeance, pushing prices substantially higher.
“Gold prices could continue to rise for some time,” it said in a new report quoted by the news provider.
Those comments were strongly backed up recently by Frank Holmes, CEO of fund manager Global Investors, which has around $2 billion worth of assets on its books.
He explained in an interview with Reuters that he believes gold has a $100 risk on the downside and a $300 risk on the upside over the course of the next six months.
“Whenever you have negative interest rates, which we have today, and you have continuous deficit spending, gold becomes an attractive asset class,” he told the news provider.
