A prominent hedge fund manager has claimed today (November 16th) that he believes Gold Prices will continue on their impressive upward path, Bloomberg reports.
The yellow metal is on an eight-year bull run but has performed particularly well in 2009, increasing by about 28 percent and repeatedly reaching record highs in recent weeks.
Now Evy Hambro, who helps to manage BlackRock Investment Management's flagship $11.6 billion World Mining Fund, has explained that lower supplies and higher demand will see those gains extended further.
"The gold trend to me is an incredibly powerful trend. Supply is still falling for the industry, which is not a sign of an industry enjoying massive prices," he told the news provider.
"There are very few gold companies that are able to replace their reserves every year by exploration. If there were, we'd be increasing our exposure, but there are not."
A similar argument was put forward last week by Afshin Nabavi, a senior vice-president at Geneva-based bullion refiner MKS Finance.
He predicted that the current rally still has room to continue because the dollar - which shares an inverse relationship with Gold Prices - is showing no signs of ending its recent struggles.
"The dollar will continue to have a very big impact on the metals and gold. Gold has got quite a way to go," he said in a Bloomberg interview.
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