Economist champions gold investment at Denver Gold Forum

The chief economist at a Canadian innovative wealth management company has outlined eight significant factors which should ensure that gold remains a sound long-term investment.

Dr. Martin Murenbeeld, from Dundee Wealth Economics, has dismissed fears over the recent correction in gold prices by claiming that "gold's run into some trouble for the moment - though the outlook remains positive".

Speaking yesterday (September 9th) at the Denver Gold Forum, he explained that it is perfectly normal to expect one or two years of downward price pressure during a long-term bull cycle.

He pointed to historical examples of similar trends, particularly that of the 70s-80s bull run, when gold pulled back by around 40 per cent during the considerable US recession before returning to its upward path.

Furthermore, he suggested that anyone prepared to make a gold investment for the long-term could easily see an inflation-adjusted gold price high of $2,300 per ounce in the coming years.

The eight points Dr. Murenbeeld outlined which work in gold's favour begin with the fact that monetary reflation is on the horizon and that the dollar must decline against Asian, Opec and Russian currencies.

In addition, he explained that excessive dollar reserves comprise part of the global financial problem, that gold remains relatively cheap and that supply remains restricted.

Finally, he added that investment demand is in the midst of a long upturn - a type of cycle which has been shown to last for many years - and that the current geopolitical and financial environment is bullish for gold.

Dr. Murenbeeld's assessment was echoed recently by Anglo-Swiss bank UBS, which claimed that the combination of long, heavy liquidation and stellar physical demand would stand gold in good stead for the long-term.

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