Gold prices are expected to remain high for the foreseeable future, according to the World Gold Council.
Factors such as the weakening of the dollar, a decline in gold productivity and economic growth in countries such as India and China have collaborated to ensure that gold investment remains at high levels, James Burton, chief executive of the organisation, told the Financial Express.
Philip Klapwijk, executive chairman of GFMS, said in the consultancy's Gold Survey earlier this year that the market is strong.
"Investor appetite for gold at the moment seems undimmed," he said. "We're at the start of a period of higher inflation and lower US growth. All that is strongly pro-gold."
GFMS stated that net official sector sales in 2007 rose by a third to 488 tons and predicted that net official sector sales will drop in 2008, also pointing out that high price expectations have already risen further.
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