Gold 'will be a popular investment in 2010'

Gold is likely to prove popular among investors in 2010, it has been suggested.

According to Rachel Benepe, co-manager of the First Eagle Gold Fund, the supply and demand outlook for the commodity will make it desirable for many people to have in their portfolios over the coming year.

She added: ’Gold provides liquidity, it’s the ultimate mattress money, the ultimate form of insurance for financial disasters.’

The expert went on to suggest that risks to investors currently include inflation, deflation, currency debasement and geopolitical concerns.

Ms Benepe went on to claim that the value of gold fell during the credit crunch because sellers needed cash.

However, once the worst of the problems had passed, there were more buyers than sellers, she added.

Recently, Reuters reported that the value of gold rose as a result of the dollar falling against the euro, making it cheaper for investors outside of the US.
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