Gold bullion 'could reach $1,200 this year'

Investors in Australia are once more looking to place their assets into gold bullion in a bid to seek a safer, low-cost environment.

Organizations such as Perth Mint Australia have seen business grow by up to 30 per cent as the world economy pushes stock prices down and demand for gold up.

A spokesperson for the company spoke to Emirates Business about his optimism for future gold prices, following a rise of prices in London to nearly $1,000 an ounce today.

"I think breaking the $840 level was a very significant move for gold," said Perth Mint's treasurer Nigel Moffatt. "Personally, if pushed I think maybe $1,200 [an ounce] is well within sight this year."

Gold bullion rose eight-fold when inflation overtook interest rates in the late 1970s. It doubled in price when the same thing happened again in 2003-2006, according to BullionVault.

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