Gold News

Gold Investment is prudent as 'downside is limited'

A senior figure at one of Asia's largest financial institutions claimed on Saturday (July 11th) that the current economic climate represents a good opportunity for Gold Investment.

Michael Beh Soo Heng, managing director of United Overseas Bank's global markets and investment management division, noted that "interest in gold has been pretty good" in the past few years.

Furthermore, he explained in an interview with the Star that he can envisage Gold Prices coming close to or surpassing their all-time high of $1,030 per ounce, which was reached in March 2008.

He told the news provider: "It is still a good time to invest in gold as downside in gold price is limited to a certain extent.

"Gold price testing the $1,000 per ounce level is pretty good in the next 12 months."

Those comments were strongly corroborated last week by another major organisation, Austria's Erste Bank, which claimed in its latest gold report that a period of inflation is imminent.

With the yellow metal renowned for its ability to provide a hedge against such an eventuality, the report suggests that gold investment should remain strong for the foreseeable future.

"The strongly expansive policy followed by central banks and the resulting money creation at historic levels - as well as the massive expansion of government debt around the globe - might make inflation literally the problem of the coming years," read one section quoted by Mineweb.

"In conjunction with the almost worldwide zero interest rate policy and the rising criticism regarding the US dollar as a global reserve currency, in our opinion this situation offers a perfect basis for further increases in the gold price."

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