Gold's Extremists

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Melinda Peer, 05.20.09, 09:45 AM EDT

Given the large question mark looming over the global financial markets, it's hardly surprising that there's been a recent infestation of gold bugs. Despite the frequent unveiling of economic stimulus measures throughout the world and equity markets gradually creeping higher, investors' increased interest in buying physical bullion is a testament to gold's appeal as a hedge against currency devaluation. (See "The Basics: Gold.")

"Surging investor demand is powering the gold market," said Citi global commodity strategist Alan Heap. "The market is expected to remain robust as long as economic and financial risks remain paramount. But it's a crowded trade and fundamentals are not supportive."

Gold's Extremists - Forbes.com