Fund manager predicts further Gold Price rises
A prominent fund manager has claimed today (October 7th) that there are three key reasons why Gold Investment will pay off in the future, the Daily Telegraph reports.
Daniel Sacks, co-portfolio manager of the Investec Global Gold Fund, explained that Gold Prices will "rally further" on dollar weakness and inflation fears as the global economy recovers.
In addition, he noted that seasonal demand in India over the next three months and continued interest in the yellow metal as a safe haven will see it extend its gains.
"The price of gold is still just over half of its prior peak in 'real' terms, even after the rally of the past eight years - the nominal peak price in 1980 at $850/oz adjusted to account for inflation equates to an equivalent price today of $1,884/oz," he told the newspaper.
"We continue to see much more upside than downside risk to bullion."
Those comments were strongly backed up last week by Evy Hambro, who manages the £1.7 billion ($2.7 billion) BlackRock Gold and General fund.
He explained that a number of key factors will ensure that gold prices are capable of maintaining momentum above $1,000 per ounce for the foreseeable future.
"Gold has established a strong base above $900 an ounce - and I expect the next move above $1,000 to be sustainable for some time," he told the Daily Mail.
"All the ingredients are in place for a sustained bull market in gold. Falling mine supply, robust jewellery demand and the potential for a reduction in net central bank sales will all be supportive of prices."
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