Gold investment 'more widespread'

Gold investment is becoming more widespread among individuals as the credit crunch bites, a fact which could help to support gold prices in the coming months.

This is according to Shilpa Kumar, senior general manager of global markets of UK-based ICICI bank, who told Reuters that the financial institution has seen a trend of increased investment since the beginning of the turbulent economic conditions earlier this year.

"We are seeing gold as an investment and an asset class as against a sentimental and emotional investment," she said.

Ms Kumar added that gold bullion has been increasingly purchased in single bars as a form of storing assets when currencies are deemed to be unstable, citing the example of the US dollar and its repercussions for confidence levels in the UK.

Earlier this month, Alexander Davidson, head of exploration and corporate development at Barrick Gold, said that he is bullish on future long-term gold prices, with a steady $1,000 an ounce price a distinct possibility again in 2008.

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