WGC investment head says gold is retaining its appeal
A senior figure at the World Gold Council (WGC) has claimed that investing in gold is becoming increasingly attractive as the uncertain financial landscape continues, Reuters reports today (October 23rd).
The WGC has published its new Gold Investment Digest report, in which it claims that volatility in gold increased by 16 per cent during the third quarter.
However, Natalie Dempster, head of investment for North America at the body, has explained that long-term volatility is at 12 per cent and that gold is still a sound investment in the uncertain financial climate.
She told the news provider: "Gold is unique in that it is an asset that bears no credit risk and therefore involves no counterparty and is no one else's liability.
"This is an extremely attractive characteristic to investors given the current financial environment."
With most market commentators uncertain about how financial institutions will cope in the next few months, it remains to be seen whether gold will go higher.
However, leading Singapore analyst Adrian Koh believes that gold prices will pass the $1,000 per ounce mark in the not too distant future - a barrier it last broke in March this year.
Mr. Koh, of Phillip Futures, said: "I think a lot of people will be speculating about $1,000 gold again, and I personally think it's not very far away."
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