Demand for gold investments 'soaring'

Gold investment demand is continuing to grow in a climate where prices could yet go higher.

This is according to fund manager Daniel Gschwend, who wrote in an article originally created for the Precious Metal & Mining Investment Outlook Conference and published on the Seeking Alpha site that the current bull market - which began in 2001 - currently "has a long way to go".

"Typically, a bull market peaks with a new high in real terms – which means currently over $2,300 per ounce for gold," he remarked, going on to add that despite conventional wisdom dictating demand for gold should fall as prices rise, the opposite is in fact true.

Mr Gschwend said: "There is some kind of paradigm shift going on in the financial world towards real assets and away from inflated paper assets."

He went on to note that gold bullion supply is one of the major factors influencing gold prices, noting that the world's second biggest gold producer, South Africa, is struggling with power problems that will not be fully resolved for another four years.

Meanwhile, commodities managers at JPMorgan Asset Management and BlackRock have dismissed fears over a potential bubble in the sector, with Evy Hambro of the latter firm pointing out that such claims have been made on an annual basis for the past five years, FT Adviser reports.

Looking to Buy Gold today? For direct access to live Gold Market prices - and to save up to 80% compared with coin dealers' fees - click through to BullionVault now...