Current gold price is 'good buying opportunity'
Frank Lesh, a trader at Future Path Trading LLC in Chicago, claimed yesterday (January 13th) that the current climate represents a good opportunity to buy gold, Bloomberg reports.
The live gold price - which rose by 5.5 per cent over the course of 2008 - has suffered a mini-slump in the past few days, falling to lows last seen in mid-December.
However, Mr. Lesh has noted that it outperformed all other raw materials last year in a tough environment and that it will continue to grow - meaning the recent slip is a good chance for investing in gold.
He told the news provider: "Gold is not as weak as some of the other commodities. Volatility in other markets and the geopolitical tensions are always supportive for gold. A good dip in prices is a buying opportunity."
That view was also expressed last week by Tim Coughlin, the president and founder of Lydian International, a major Canadian-listed mining, development and exploration company.
In an interview with proactiveinvestors.co.uk, he revealed that he expects gold to perform well in the coming months.
"I know it is volatile, like everything at the moment, as we hopefully bounce along the bottom of this trough," he told the news provider.
"But I think gold is looking good over the medium term."
The Reuters/Jefferies CRB Index of 19 raw materials fell by 36 per cent last year, while the Standard and Poor's 500 Index dropped by 38 per cent.
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