Sponsored by
Gold tipped to glitter again
Gold prices could set new record highs above $1,030 an ounce in 2009 as investors flock to it as a hedge against future inflation and a weaker dollar, according to a leading fund manager.
Investec Global Gold Fund's portfolio manager Daniel Sacks said a combination of safe-haven buying of gold as an alternative to paper currencies, inflation, and a dearth of fresh mine supply in response to rising prices are set to boost bullion.
"We believe gold will continue to perform well in 2009 against most assets and, in US dollar terms, should attempt a breach of the 2008 highs of $1,030 an ounce," he said.
The precious metal hit that level in March last year as a sharp slip in the dollar fuelled hefty gains. Dollar weakness tends to push investors towards hard assets, such as gold.
While its 2008 high was a nominal record, in inflation-adjusted terms the precious metal still has scope to rise before reaching the highs it hit in the early 1980s, said Mr Sachs.
"The price of gold is still just half of its prior peak in 'real' terms, even after the rally of the past eight years," he said. "We see much more upside than downside risk for bullion."
Mr Sacks said a host of factors, including fund appetite for commodities, could combine to support gold. "In almost all but a global soft-landing scenario, gold is likely to rally, in our view," he said. "With a global recovery unlikely to be smooth, the two main risks to most asset values are inflation and the US dollar – both of which are decisively gold positive."
Email to a friend
Print this page
Looking for...
Featured advertisers
Jobs
Search for a job
Motors
Search for a car
Property
Search for a house
Weather for Yorkshire
Thursday 24 May 2012
Today
Sunny spells
Temperature: 10 C to 25 C
Wind Speed: 12 mph
Wind direction: North east
Tomorrow
Sunny
Temperature: 9 C to 21 C
Wind Speed: 16 mph
Wind direction: East
