Gold News

Gold prices 'to be lifted' in the long term

An analyst at UK stockbroker Fairfax claimed yesterday (January 21st) that investing in gold is a sound long-term strategy considering the plight of the US dollar, Reuters reports.

Gold tends to share an inverse relationship with the greenback, which explains why its value has been fairly volatile since it hit a record price of $1,030 per ounce last March.

However, mining expert John Meyer has explained that the sheer volume of money pumped into the economy by governments in light of the financial crisis will eventually push gold prices much higher.

He told the news provider: "Longer-term, the stimulus plans by the United States and printing of money are likely to lead to devaluation of the dollar which will lift gold prices."

Michael O'Kane, the head of bullion trading at the New Zealand Mint, recently revealed that the surge of gold buying by the country's investors has been intense ever since the beginning of the credit crunch.

"Two years ago, I took two weeks off during January trading," he told the Melbourne Herald Sun.

"This year, I have had Christmas and New Year's Day off - it's nuts, and has been since Bear Stearns went sideways."

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