CNBC Stock Blog
- Mulling Buffett's Stock Advice? Get in With REITs: Fund Managers
- So Now You Can’t Give Microsoft Away?
- Groupon Needs More Disclosure: Analyst
- China’s Steelmakers Set for Turnaround: Analyst
- Bulls Bet Silicon Motion Will Bounce
- Tobacco Stocks a Hot Dividend Play: Analyst
- Forget the Earnings, Disney’s Issue Is the Multiple: Analyst
- Drug Stocks Do Well in ‘Gloom and Doom’ Market: Analyst
ABOUT THE CNBC STOCK BLOG
RSS FEED
CNBC EXPLAINS
Investing in Precious Metals
Text Size 
Special to CNBC.com
"The persistently high price of oil, the weaker dollar and the resurfacing credit crisis are driving up the price of precious metals, making them safe investments," said Jim Steel, chief commodities analyst for HSBC.
"There's a number of indicators that show investor risk-averse behavior is rising," he said, "and that, particularly, is a funnel into the precious metals."
Steel predicts gold prices [US@GC.1
Loading...
()
] in particular will continue to rise until the Fed responds more aggressively to inflation, or until oil prices cap. But even though gold and oil often move simultaneously, he cautioned investors not to draw too much of an analogy between the two.
"Directionally they do move together, but it's not necessarily a lock-step relationship," he said.
Disclosures:
Disclosure information was not immediately available for Steel or his fund.
Data is a real-time snapshot *Data is delayed at least 15 minutes
