Gold investments 'offer long-term opportunities'

Investors considering looking to gold bullion should consider both the short and long-term view on the yellow metal.

This is according to Norman Stacey of Diversified Investment Strategy, who recently told the New Zealand Herald that while gold as a short-term investment has seen much positive activity recently as a result of "perceived threats" to the global economy, gold bullion could also prove fruitful in the longer-term.

These threats may include the weakening dollar, geopolitical tensions and high oil prices - all factors that have been identified by experts as key drivers of gold prices in the last few weeks.

Mr Stacey noted that while latecomers to the gold investment sector may be "disappointed" with the yellow metal in the short-term, a longer view may bring even higher gold prices.

"Medium and longer-term, we believe current official measures will be inflationary with gold destined to go higher as a consequence," he remarked.

"Simply put, more money than gold is being produced."

The comments appear to tally with recent forecasts from major banks. Most recently, the Financial Times reported that Barclays Capital has predicted gold prices could hit the $1,000 an ounce mark by this summer.

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