Gold Buying May Persist on Economy Concerns, Inflation, OECD's White Says

Investors may continue buying gold amid concerns about the economic recovery and the prospects for inflation, said William White, chairman of the economic development and review committee at the Organization for Economic Cooperation and Development.

White used to head the monetary and economics department at the Bank for International Settlements. He spoke today at a London Bullion Market Association conference in Berlin.

“Some kind of double dip seems to be more likely,” White said. Still, “it is possible that the recovery will continue.”

“I think deflation is more likely,” though a period of high inflation is possible, he said.

“In this environment of economic uncertainty, is there a place for gold? In a world of tail events, whatever they may be, the answer has to be yes.”

To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net.

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net.

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