Gold prices look set to react positively over the next 12 months as demand edges higher and production and new discoveries are on the slide.
That is the view of Lawrence Williams - the former chief executive officer of top mining industry business publisher Mining Journal - who believes now is a perfect time to buy gold.
Mr. Williams, writing on Mineweb.co.za, explains that gold price fundamentals are still strong, with leading gold producers South Africa and Australia recently reporting slumps in production.
Furthermore, he notes that new deposits are seemingly conspicuous by their absence, while demand is surging around the world, not least in Abu Dhabi, which has seen year-on-year sales rise by 300 per cent in volume and 200 per cent in value during August.
He said: "Sooner or later gold will react positively. The dollar will stabilize or fall back again as perception of the true state of the U.S. economy returns.
"There will be more serious fallouts from the ongoing credit crisis with more bank failures on the horizon, while growing global sabre-rattling suggests some uncomfortable political times ahead. All positive for gold."
Meanwhile, global investing pioneer Adrian Day, president of Adrian Day Asset Management - which manages portfolios in resource and global equities - has concurred that many factors are in place for a gold price surge.
He said: "Negative rates are always bullish for gold."
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