Gold prices 'looking positive' for the future

Fairfax analyst John Meyer explained yesterday (October 6th) that his company has a positive outlook on the future of gold prices from a long-term perspective.

Gold has endured a year of considerable volatility, breaking the $1,000 per ounce barrier in March before slumping back down sharply over the summer months.

But it has staged a revival in recent weeks as the global financial crisis deepens and Mr Meyer believes that this is a trend which is set to continue for the foreseeable future.

He said: "We feel extremely positive on gold prices as investors rush to buy gold as protection against further market volatility.

"Gold seems so much more tangible an investment than many other instruments and is not vulnerable to rising supply. [And] gold looks good in an inflationary environment."

Jonathan Spall, a director in Barclays Capital's commodities division, also championed gold recently by explaining that he has been persuaded by its safe-haven qualities.

"I was always very sceptical of the argument of gold as a safe haven, but that has changed dramatically for me and for others - now it's financial institutions themselves that are under threat," he said.

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