Tom Pawlicki, an analyst at Chicago-based firm MF Global, claimed on Tuesday (February 24th) that Gold Investment will continue to grow this year, Bloomberg reports.
Gold Prices hit $1,006 per ounce last Friday but have since slumped by around $30-40 as some investors moved to take the opportunity to call in their profits.
However, Mr. Pawlicki has explained that despite recent volatility in the price of the yellow metal, ongoing concerns about the financial crisis will continue to underpin investment demand.
He told the news provider: "Gold and other precious metals should continue to receive inflows of investment due to their ongoing outperformance of other asset classes.
"Support will continue to come from disappointment in efforts to stem the financial crisis and the weakness in the stock market that has resulted."
That view was implicitly corroborated last week by Jeffrey Nichols, head of American Precious Metals Advisors, who made a bold price prediction which was all the more surprising as he is not known for being a gold bug.
"Most people would say I'm nuts, but I think we are going to see gold over $2,500 per ounce before we're done," he said in an interview with Mineweb.
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