Gold Reasserting Itself as a Safe Haven
Source: Mineweb.com (9/13/07)
Independent research house GFMS Ltd has released its first update to the annual Gold Survey, and at the group's annual London seminar on 13th September and GFMS Chairman Philip Klapwijk noted that gold is reasserting itself as a safe haven.
...Investor activity will remain the key to prices staying over $700. The consultancy is of the view that the credit crisis is likely to get much worse before it gets better and that this implies bouts of significant liquidation across all markets, with potentially short-term negative effects on gold. It is a matter of record that gold was sold in line with other commodities during August, partly as a flight from risk and partly also as a means of raising liquidity. Short term investors, therefore (such as hedge funds) moved swiftly in and out of, and back into, gold during August, but longer term investors remained in the market and did not appear as sellers.