Gold investment appeals for its 'greater returns'
A senior figure at the Thai Gold Traders Association has explained the appeal of buying gold as a long-term investment is growing as the global financial markets continue to struggle.
Kritcharat Hirunyasiri, deputy secretary-general of the body, expressed his belief that gold prices will continue an upward trend for the next three months towards the $950 per ounce mark.
He also pointed out that returns on gold last year were as high as 20 per cent, compared with two to three per cent from fixed bank accounts, four to six per cent from funds and minus ten per cent from stocks.
He said: "Gold's appeal is expected to persist, as people realise gold is another lucrative investment alternative to savings, with better returns than a bank."
With Congress finally approving the $700 billion rescue plan for the US banking system, some commentators have suggested that the impact will be negative on gold.
However, Carlos Sanchez, a precious metals analyst at CPM Group, noted that any effects from the bailout will take time and that a gold investment could still pay dividends over the next six months.
"During that time, there will be continued uncertainty about whether the plan is improving the economy leaving precious metals to remain supported on safe-haven flows," he said.
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