Salvation in gold

Other experts from the records of gold do not wait, but they note that in any case, the metal will be a good investment compared with financial instruments. As noted at Merrill Lynch, the preferences of wealthy clients in Europe changed dramatically: amid fears over global economic system has increased the demand for physical gold, not on its derivatives financial instruments. "They are so worried they want to be transportable assets in their homes. I never thought that clients will contact me after box Krugerrand (South African gold coin)," - said the investment manager for Merrill Lynch to work with wealthy clients in Europe, Gary Dugan . In his view, investment in gold would be more profitable and safer than the stock market, where in the first half of 2009 against the backdrop of state economies across the world can start the rally, which, however, may end by mid-year. Following Friday trading in New York, an ounce of gold has not changed in price, ending the week at around 855 dollars predicts Merrill Lynch, the cost of an ounce soon break through the historical record in 1030 dollars, recorded in March 2008, and by June of this year will reach 1,150 U.S. Most analysts also expect that the precious metal will rise in price, though not so much: according to the median forecast of 20 analysts surveyed by Bloomberg, the average price per troy ounce in 2009 will be $ 910, and four of them predict that by year-end gold price will rise to 1 thousand dollars hampers their optimism that the gold becomes more expensive for the eighth consecutive year, this is the greatest period of growth since 1949. And since 2001, its value against the dollar has tripled. But even skeptics believe that the dynamics of the gold price will be higher than the overall market. At Merrill Lynch believe that gold will rise in price as in the inflation and deflation at the threat which the West has risen sharply after the rate cuts by leading central banks and the fall in commodity prices. "Gold is a good feel for the period of deflation, when the background of fear and mistrust in the financial system increases the purchasing power of money and asset values ??fall" - agrees GoldForecaster.com analyst Julian Phillips. An ounce will also rise in price in the event of a possible weakening of the dollar. "When there is no confidence in the currency, gold retains its value. People will treat it as an alternative investment," - said Bloomberg analyst AltaVest Worldwide Trading Tom Hartmann. Rise in prices of precious metals will also contribute to continued economic turmoil. "We must prepare for a repetition of the problems in other regions, in other markets and in new forms. All this only goes to the benefit of the gold market to the extent that, as more investors realize why it played such an important role in the history of money" - predicts Julian Phillips. -