Gold prices 'have to be up' in the long term
The head of India's largest bullion dealer explained on Friday (December 5th) that he believes investing in gold is a sound long-term strategy, The Hindu reports.
Recent data from the World Gold Council (WGC) revealed that demand for gold was at a record $32 billion during the third quarter of 2008 - a figure which also represents a rise of 18 percent.
Now Sanjiv Batra, chairman and managing director of MMTC, has claimed that investors should be looking to buy gold as it is likely to offer substantial returns in the long run.
He told the news provider: "Long-term gold prices have to be up. Gold has a bright future."
Mr. Batra also added that the yellow metal is continuing to retain its appeal as "people prefer to hedge in gold".
The claim that gold is still being viewed as a hedge against inflation was echoed recently by Natalie Dempster, the head of North American investment at the WGC.
"Many countries are still under the threat of inflation, creating a strong demand for gold to hedge against a material hike," she commented.
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