Gold News

Gold is experiencing 'perfect storm'

Investment experts have claimed that the current situation in gold markets has brought to a head the underlying potential of the precious metal as a highly promising investment.

Investment management specialist Hargreaves Lansdown said that the "tiny amounts" of gold produced were always outweighed by demand, with the metal's scarcity adding to the inherent monetary value it continues to represent.

The firm said that those looking to buy gold saw the metal as the holder of "final stall" value, while currencies fluctuated more dramatically - a trend evidenced by the dollar recently sinking to record lows.

Mark Dampier, head of research for Hargreaves Lansdown, said: "I think that gold is headed for over $1,000 an ounce. You've got a perfect storm in the markets.

"You've got supply and demand, sovereign funds, rising jewellery in places like India – and you've got a huge amount of geopolitical and economic risk going on at the moment."

Forecasts around the $1,000 mark have rapidly made their way into the gold market, with the metal recently shooting up to establish itself around the $800 mark.

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