Portfolio manager bullish on long-term gold investment

A leading portfolio manager has explained today (September 9th) that his long-term outlook for gold remains positive despite the recent strengthening of the dollar.

Daniel Sacks, from Investec Asset Management, suggested that gold prices will be able to consolidate over the coming months at anything up to $1,000 per ounce.

But in a boost for anyone contemplating making a gold investment, he claimed that he is extremely bullish about the picture for gold in the more distant future.

In an interview with the Daily Telegraph, he said: "Over the longer term, we remain positive on gold, based on a mix of macro and supply-demand drivers.

"The forces that have propelled gold for the past five years are firmly in place, and policy prescriptions for the credit crisis seem powerfully and uniformly reflationary.

"Gold has shown resilience during a period of seasonal slack, while weathering investor profit-taking without material damage."

In addition, Mr. Sacks explained that the dollar will continue to weaken against the emerging currencies which are crucial to the gold market.

In particular, he predicted that it will struggle against the rupee and the renminb, which are pivotal to gold demand, and the Australian and Canadian dollars and the rand, which are important for supply.

Mr. Sacks' view was backed up recently by MineWeb columnist and former chief executive of top publisher Mining Journal Lawrence Williams, who claimed that all the economical fundamentals are in place for a gold price surge.

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