Wednesday, February 17, 2010

Investors less optimistic about economic recovery

Gold coin investments remain an attractive option because of ongoing unease among many about the direction of the economy and how strong any pending recovery will actually be.

One such example of investor uncertainty comes from the February edition of the Bank of America/Merrill Lynch Survey of Fund Managers.

According to the survey, many have investors have reduced their expectations for economic growth and are looking to more stable options, including cash. The investors are also said to be less optimistic about economic recoveries in emerging nations like India and China.

In February, only 51 percent of European investors expected economic growth in their region of the world, compared to 74 percent in January. A total of 42 percent believe that there will be no interest rate increase by the Federal Reserve before 2011, which reflects a broader expectation of a stagnant economy.

"Investors are questioning whether this is a pause in growth or a trend reversal. We believe it's the former," said Gary Baker of BofA Merrill Lynch Global Research.

Fortunately, investors have long known that they can turn to gold and silver investments during times of economic uncertainty and other financial setbacks.