Gold investment 'will push up prices'

Gold prices could once again rise past the $1,000 an ounce barrier in 2008 thanks to an increase in investment demand.

This is according to GFMS chairman Philip Klapwijk, who said at a conference in Shanghai that he believes the good run for gold bullion is not yet over and that gold investment is still a good opportunity.

He said that factors in the economy will continue to support gold prices, with a substantial increase a distinct possibility, reports Bloomberg.

"The effects of the sub-prime credit crisis continue to provide a strong investment case for gold," he said, adding that prices could increase to $1,100 an ounce.

In a separate report, Micheal Mapa of Inside Metals also said that gold prices could rise due to supply and demand concerns.

In related news, Tom Albanese, chief executive of mining company Rio Tinto, said that he believes demand for minerals and metals will double by 2022.

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