Gold News

More people to be Buying Gold jewelry?

The number of people Buying Gold jewelry is likely to pick up in the coming months following the recent rise in Gold Prices.

That is according to Dominic Schnider, an analyst at Switzerland-based global financial services firm UBS, who suggested that demand for gold jewelry tends to follow Gold Pries with a slight lag.

In a note to Canada's National Post, he predicted that jewelry demand will pick up in the coming quarters, especially with the market already picking up in India.

"With the solid economic recovery in emerging markets, wealth creation should provide the basis for demand growth and pent-up demand to find its way to the market," Mr. Schnider said.

"Mounting inflation in key emerging market economies will also render support," he added, predicting that jewelry demand will rise by 20 percent compared to 2009 levels this year.

Mr Schnider's viewpoint was based on the assumption that Gold Prices will rise to between $1,250 and $1,300 an ounce over the coming months.

Further rises in the value of the yellow metal are rendered more likely by the fact that investors are increasingly using it as a hedge against weakening currencies.

Speaking to Reuters, Sean Corrigan, chief investment strategist at Swiss-based Diapason Commodities Management, which also has offices in London and manages multi-billions in assets, expressed words to that effect.

He told the news provider: "Clearly gold has been based as something of an insurance policy."

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