The head of a leading gold fund has suggested today (March 27th) that all the fundamentals are in place for Gold Prices to rise this year, Citywire.co.uk reports.
Gold Investment hit record levels in 2008, according to the World Gold Council, as investors looking for a safe place to put their money amid the ongoing global financial crisis.
Now Evy Hambro, gold manager of the BlackRock fund, has explained that prices will be boosted by a number of factors, such as the decline in exploration success, which could push demand higher.
He told the news provider: "Gold production fell last year and may fall further in 2009. This is partly due to the lack of exploration success by the gold mining industry which discovered 15 million ounces last year, compared with production of 80 million ounces.
"Ongoing financial turmoil and inflationary pressures will continue to stimulate investment demand. So current trends in these fundamentals are extremely supportive for the price to trend higher."
That view was echoed recently by Joe Foster from Van Eck Associates, who expressed his belief that gold investment will continue to be strong for the remainder of this year and into 2010.
"The credit crisis, everything that's happening to the global economy, and the reaction of the governments and the monetary authorities set up a very, very positive environment for gold, not only in the near term, but going out many, many years," he told the Gold Report.
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