Thursday, July 22, 2010

Roubini Global Economics: Don't Jump into Gold

By: Robin Knight
CNBC Associate Web Producer

Gold has outperformed all other core assets over the last ten years and the financial crisis has added fresh impetus to buyers of the precious metal, but now is not the time to jump into the gold market, Roubini Global Economics (RGE) said in a note to clients Wednesday.

"The concerns propelling the price of gold specifically are very real and should not be ignored. But is now the time for investors to jump the gold bandwagon? We wouldn’t encourage it," RGE said.

Gold [XAU=X 1186.5 -5.30 (-0.44%) ] has gained an average 15.3 percent per year in dollar terms since January 2001, the note pointed out. The precious metal is attractive to investors concerned about high inflation, persistent deflation or the risk of a global financial meltdown, the note added. (more)

No comments:

Post a Comment