World » Americas
Author`s name Dmitry Sudakov

Gold remains world’s only reliable risk-free investment

Gold has always been considered an instrument of reliable investments. The precious metal still preserves this function today. As soon as the expectations to rescue the world economy from decline were exhausted, investors took a plunge into the market of gold, the price of which may soon reach $1,000 per troy ounce. Analysts say that the price on gold will continue to grow until the economic crisis reaches its bottom line.

Gold has always been valued as a secure asset during critical times. Those who had money always preferred to invest in gold to survive various critical periods. Gold has practically no risks: the price on gold has not changed during the recent 100 years. It also remains unchanged despite any inflations.

“Many investors, who believed that the crisis would continue to develop, started to increase their gold positions. Now everyone believes that the crisis has not reached its bottom line yet, that is why many began to buy gold to outwait the crisis in something reliable,” Mikhail Molodov of AG Capital said in an interview with Bigness.ru.

The maximum price of gold in New York (COMEX) against its April futures made up $975.4 per troy ounce on February 17, which became the highest quotation since the second half of July 2008.

Experts also point out the difference between the dynamics of gold prices and dollar-euro quotations. Gold would lose its value as the dollar would grow, although such interdependence can not be observed now.

The mutual growth of gold and the dollar occurs as market members search for risk-free assets and purchase gold and US Treasury bonds. Investors buy gold to save their funds and purchase dollars to buy treasury bonds.

Analysts say that gold will continue to grow in the near future. As for other precious metals, they also grow, contributing to the dynamics of gold. For example, the price on silver gained 2.8 percent, while its troy ounce at COMEX went 38.5 cents up. The official price on silver makes up $14.01 per troy ounce.

The price on platinum exceeded the level of $1,100 per troy ounce for the first time in 4.5 months. The maximum price of platinum deals against the April futures made up $1,105.3 per troy ounce, which marked the highest quotation since the end of September 2008.

Palladium is traded on the level of $220, which is also a record amount in many months.

Ekaterina Evstigneyeva
Bigness.ru

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