Brentwood Group – Gold is set to reassert its role as the ultimate safe-haven. Brentwood Group is confident that gold will resume its inflation-hedge and safe-haven status as the US banking system continues to deal with fallout from Lehman Brothers’ bankruptcy.
Sources close to Brentwood Group said as the current situation in global financial markets is unprecedented, investors are seeking the shelter that gold has traditionally provided.
The credit default swaps (CDS) market is still dealing with the nationalization of Freddie Mac and Fannie Mae. It now has to deal with Lehman Brothers and, potentially, AIG which is struggling to agree loans to help it through a period of illiquidity.
“The CDS market has never been seriously tested,” said a Brentwood Group source. “Many investors aren’t taking any chances and are heading for the safety of gold.”
