Sunday, November 27, 2011

Debt Crisis Drives Biggest Ever Investment in Gold

Those learning how to trade may be considering the prospect of gold bullion rising in price over the next few weeks, as investors store up the biggest ever stock of the precious commodity.

And Europe's troubling debt situation may encourage even more traders to invest in gold, according to reports from Bloomberg. A survey from the news provider found that 18 of the 26 gold traders it questioned expected bullion prices to rise next week.

It also calculated the current value of holdings in exchange-traded products backed by gold as $127.4 billion (£81.7 billion).

Carole Ferguson, an analyst at Fairfax IS in London, said: "There's absolutely no doubt that people are still worried. The market's being constantly confronted with the flow of bad news. Gold is still an asset that people will look at."

This bad news continued yesterday (November 25th) as serious concerns about the British economy saw the sterling fall in trade.

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