Gold News

Outlook for Gold Investment is 'positive'

The head of the World Gold Council (WGC) claimed today (November 19th) that Gold Investment is looking like a sound strategy in the present economic climate.

In its latest market report, the body revealed that investment demand for gold bars increased to 81.2 tonnes in Q3 2009, compared to 57.7 tonnes in the previous quarter.

WGC CEO Aram Shishmanian explained that another statistic highlighted by the study - that central banks bought 15 tonnes more gold than they sold - is also hugely positive for the future of the yellow metal.

"We expect to see a continuing trend of central banks diversifying their dollar exposure in favor of gold. The outlook for investment is positive," he said.

A similarly optimistic assessment was provided last week by Leon Esterhuizen, a gold mining analyst at RBC, which is the largest bank in Canada.

He explained that, although the current high Gold Prices are prompting some commentators to predict a major sell-off, gains could be extended well into next year.

"You have the perfect storm at the moment and so there is no reason to think anything should change," he said in an interview with the Independent.

"In the next six months or so, we would expect to see $1,200 gold."

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