JP Morgan analysts advise gold buying during holiday period

Two senior analysts at JP Morgan urged people on Monday (December 1st) to consider investing in gold for the upcoming festive period.

Metals analysts John Bridges, based in the US, and South Africa-based Steve Shepard have noted that now could be a good time to buy gold as an upside is on the cards in the early part of 2009.

Their view is largely based on the problems currently facing gold miners, who are struggling to maintain output, while central banks are depleting their intended sales quotas.

Quoted on Mineweb, they wrote: "The tighter gold supplies and counterparty risk could give gold (and thus directly the equities) a lift through year end.

"We'd be buying some gold for our Christmas stocking and Hanukkah gifts."

The benefits of making a gold investment were also championed recently by Barbara Lambrecht, an analyst at Commerzbank, the second-largest bank in Germany.

"Investment demand for gold should hold up because there is strong risk aversion in the markets right now. That's why we are optimistic gold will hold up," she said.

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