Gold works as an effective hedge against inflation, which is important for investors when the value of paper currencies is being affected by rounds of quantitative easing
(PRWEB UK) 21 January 2013
Spot gold rose by 0.4% to $1,689.32 an ounce on Monday morning, as expectations grow for aggressive monetary easing from the Bank of Japan.
There are expectations that the central bank may make an open-ended commitment to buy assets until a 2% inflation target is in sight at a policy meeting due to end Tuesday.
This would drive yen to a two and a half year low, and lead investors to protect their savings and invest in gold as a hedge against inflation.
Monetary easing by the Bank of Japan last year helped increase the price of gold, as well as other monetary easing measures by the Federal Reserve and European Central Bank.
A spokesperson for Physical Gold said:
“Monetary easing from the Bank of Japan last year greatly supported gold investment and looks to again. Gold works as an effective hedge against inflation, which is important for investors when the value of paper currencies is being affected by rounds of quantitative easing.”
Physical Gold is continuing to monitor these latest developments with interest.
Physical Gold Ltd is a leading UK gold dealer, helping investors diversify their portfolios with innovative investment solutions. Renowned for their ground breaking products such as the Sipp gold and Gold Accumulation Account, the firm specialise in providing customers with tailored assistance in sourcing the best gold for their personal requirements. Based in London, the team are BNTA accredited and have an unrivalled knowledge of the gold market as well as an exceptional understanding of the general financial markets.