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$1,000 'now a floor' for Gold Prices

The $1,000 per ounce value that was once an almost intangible ceiling for gold is now more likely to be the floor for the price of the yellow metal.

That is according to one analyst, who highlighted gold's great investment potential by suggesting that such a level was considered unachievable by some not too long ago.

Huw McKay, senior economist at the Westpac Banking Corporation, one of Australia's 'big four' banks with 40,000 employees globally, was talking at a conference on gold in Perth yesterday.

According to the publication, he claimed that Gold Prices have increased year-on-year by approximately $100 per ounce more than they were predicted to in recent years.

"What we did not know was going to happen was that we were going to have such an enormous collapse in risk appetite that pushed gold beyond the US$1,000 magical barrier," Mr McKay said.

"It is now being seen as the level at which any plunge in the gold price will start to pull out of such a dive."

Talking on Yahoo Finance, Marc Faber also highlighted the long-term strength of gold, warning that large fiscal deficits and money-printing initiatives have left the US economy and many in the western world "beyond repair".

The author of the Gloom, Boom and Doom report urged investors: "You have to slowly accumulate some gold."

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