Gold retains investment value as a crisis metal
Gold has continued to show its value as a crisis metal in the first trading day of the New Year.
Although the yellow metal slipped one per cent in Europe on Friday (January 2nd), it avoided the five per cent slide experienced by oil as the dollar strengthened against the euro, according to Reuters.
The metal is priced at just over $870 per ounce but is expected to hold its value and even strengthen as the year goes on.
"We are still seeing some interest from the retail side for investment bars," said Wolfgang Wrzesniok-Rossbach, head of sales at precious metals group Heraeus.
"Since the crisis in the financial markets started, gold has really benefited from its role as a crisis metal, or a safe haven."
Mr Wrzesniok-Rossbach's comments echo those of Mineweb.com's Lawrence Williams, who predicted a rise above the four-figure mark in 2009.
"Gold is another likely beneficiary from continuing financial and political turmoil," he said.
"Indeed gold was one of the few sectors which showed a profit overall in 2008, but gold stocks may still have a little catching up to do so there is potential here.
"Overall one would look to gold perhaps to regain the $1,000 an ounce level during the year - and it could well then stay there which could again substantially outperform any general stock market recovery, if indeed there is one."
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