Gold News

Investing in gold will continue on strong demand

Gold investors have been reassured today (August 18th) that prices will rise in the long-term, making buying gold a safe option.

Some commentators have expressed concern over the future of gold prices because of its inverse relationship with the US dollar, which has begun to stage a recovery.

However, Masahiko Ejiri, who is a fund manager at the £26 billion Mizuho Asset Management Company Ltd in Tokyo, has claimed that gold should still have a place in any diverse investment portfolio.

He said: "Fundamentally I'm not sure about the dollar in the long-term. I'm still a strong believer that commodity prices have to rise further because demand growth outpaces supply.''

That view was corroborated by New York-based Morgan Stanley analysts Hussein Allidina and Jeremy Friesen, who claimed in a report that raw materials may be able to "buck" the trend of a rising dollar.

The report noted: "Commodity prices have historically lost less from a rising U.S. dollar than they have gained from a falling dollar."


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