Standard Chartered 'bullish' on long-term gold investment

A major UK-based bank has claimed that the sustained response to the global liquidity crisis will eventually have the effect of pushing gold prices higher, Reuters reports today (November 18th).

Major governments around the world have been pumping funds into their financial institutions in a desperate attempt to bring a modicum of stability back to the picture.

But now Dan Smith, an analyst at Standard Chartered, the UK's third-largest bank by value, has explained that such a concerted and dramatic effort will benefit gold in the long run.

He told the news provider: "We are quite bullish for gold in the long term, primarily because we see the dollar weakening substantially on all this liquidity being pumped into the system."

Mr. Smith's views were echoed recently by Rebecca Patterson, the global head of foreign exchange and commodities at JP Morgan, the number one US bank by value.

She expressed her belief that the average investor now wants "a numbered gold bar in his or her name" as physical demand grows, while longer-term investment is also appealing.

"We're starting to get to levels where, even if we have some down-side risk, prices are attractive enough to consider starting to build long positions," she said.

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