Gold News

Thinktank chief champions long-term Gold Investment

The head of a major macro-economic thinktank has today (May 13th) endorsed the value of Buying Gold as a long-term investment, Reuters reports.

DH Pai Panandiker, president of the RPG Foundation, has admitted that there is too much danger of an over-supply of Gold Bullion to make it a worthy short-term purchase.

However, he has noted that this trend is likely to change in the future, with global supplies declining, pushing up demand and therefore gold prices.

Writing for the news provider, he stated: "Production of gold has been declining with the maturing of gold mines.

"Worse still, hardly any new sources of gold have been discovered. Hence gold supply will shrink and prices over time will rise to make gold a good investment."

That view was corroborated last week by Aaron Smith, managing director of the Superfund Financial Singapore investment firm, who predicted that gold prices will grow substantially as the dollar is set to suffer.

"Gold can go to $1,500 an ounce in the next two to three years," he said in a television interview with Bloomberg.

"Much of that is based on the erosion of the value of the dollar because of the increasing money supply."

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