Gold News

Buying gold will bring 'significant returns'

Potential gold investors have been advised that bullion remains an essential tool of diversity and insurance in any well-rounded portfolio.

After a period of huge growth leading to a peak in March 2007, gold prices have cooled slightly in the past few weeks against the rallying dollar.

However, Mark O'Byrne of British Gold Sovereigns has explained that many investors are now poised for the decrease to bottom out and to start buying again - a sentiment supported by a number of leading financial institutions.

He said: "Besides the ever more important factors of inflation hedging and financial insurance, gold is likely to continue to outperform other asset classes and to provide significant returns to gold buyers.

"Many of the world's major investment banks are in agreement that gold is again in a long-term multiyear bull market.

"Many believe gold will surpass its inflation adjusted 1980 high of $2,400/oz in the coming years."

Mr. O'Byrne cites the example of Citigroup's former head of technical research Louise Yamada, who predicts that gold could reach $3,000 per ounce within a decade.

Ms. Yamada is highly respected in the industry after being named as Wall Street's best technical analyst between 2001 and 2004.

France's largest bank Credit Agricole's brokerage Cheuvreux also sees the possibility of a rise to $2,000 per ounce or higher, while Gold and Silver Investments Limited believes gold will surpass its inflation adjusted high of $2,400 per ounce in the next five years.

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