Gold News

Investing in Gold ETFs 'bumping prices'

Gold Bullion prices have been boosted by the number of people investing in the commodity via exchange-traded funds (ETFs).

Adrian Lowcock, senior investment adviser at Bestinvest, said: "There are a lot of people looking at charts, chasing up the price, and a lot of amateur investors in gold because of ETFs giving them access to invest directly in the asset class."

He added: "The amount of ounces of gold being held by ETFs is huge – that gives a bump to the price."

Gold Bullion prices have dipped slightly since peaking earlier in December and Mr Lowcock warned the asset may have "got a little bit ahead of itself" and could drop further before the year is out.

Despite the fall, however, a recent poll by the Association of Investment Companies (AIC) revealed fund managers are optimistic about gold's performance in 2010.

"Interestingly, this year's 'gold rush' is tipped to continue with over a quarter of managers predicting that gold will be the top performing asset," said the group's communications director Annabel Brodie-Smith.

William Rhind, strategic director at ETF Securities USA, told Barrons Online recently that Gold Bullion investors are viewing it as a "long-term strategic asset".

Investing in Gold? For the cheapest, fastest & most secure route to solid Gold Investment simply register for a free, no-obligation account at BullionVault now...ADNFCR-1047-ID-19533719-ADNFCR

See all articles by Gold Bug here.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn

 

 

Market Fundamentals