Gold News

Lower Gold Prices offer investment opportunities

The recent fall in Gold Prices could result in an upturn in the number of people investing in the yellow metal as they look to capitalize on cost reduction.

That is the opinion of Stephen Platt, a commodity analyst at Archer Financial Services Inc. in Chicago, who made his comments following futures dropping below $1,100 on Friday for the first time since November 10th.

He said: "Gold prices have fallen down to a level where you might start to revive investment demand. There's a lot of reallocation going on.

"Those markets which had done the best this year are starting to show disinvestment, and those that haven't are showing some pop. Gold has been one of the bigger investment vehicles this year."

Despite the slight fall, Gold Prices reached $1,227.50 on December 3rd and is on course for its ninth consecutive yearly increase.

The investment opportunities offered by gold were last week highlighted by Peter Fertig, a consultant at Germany's Quantitative Commodity Research.

He said that an increase in market-based risk can often be directly correlated with rises in gold prices as a result of its inverse relationship with the US dollar, according to Reuters.

As a result of a return to risk-taking, gold investment opportunities could be expected to rise, he said.

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