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Investors Buying Gold "Will Say it was Cheap in 5 Years"

LEADING ANALYSTS believe investors Buying Gold today will benefit from the metal's traditional safe haven status.

Despite gold falling from its September high of $1920 per ounce, the consensus among 8 of the top 10 analysts tracked by Bloomberg is for gold to set a new all-time early next year.

"There's huge potential for gold in the coming years," says Jochen Hitzfeld, Munich-based commodity analyst at UniCredit, who was the most accurate of the ten forecasters tracked by Bloomberg in the past two years. 

"Investors are Buying Gold. That's reinforced by buying from central banks. Prices did run up a little bit too fast, but the drop was just a breather."

The fifth-best forecaster in the Bloomberg survey believes that macroeconomic developments are a key consideration for those who are thinking about Buying Gold.

"When we look at gold five years from now, we will say gold was wildly cheap," reckons Jason Schenker, president of consultancy Prestige Economics. 

"What happens to gold is going to hinge on what happens to the Dollar, and that is going to be influenced by what happens in Europe and monetary policy."

"There is a loss of trust in the entire financial system," adds Ronald Stoeferle, senior analyst at Erste Bank.

This has created an "urgent need for safe-haven investment," he adds.

 "The environment for gold is just perfect."

Last week Graham Briggs, chief executive of the world's fifth-largest gold producer, Harmony Gold, said his belief in gold "remains steadfast".

"We are forecasting continued high Dollar prices in our next financial year, especially given a weaker Dollar and global economic uncertainty," he said.

"More important, however, are the fundamentals of supply and demand for physical gold...on the supply side, new mines are coming on stream, some existing producers are ramping-up production and recycling of tailings and dumps has become an industry in itself...this supply must, however, be considered against falling production from mature mining regions, such as South Africa."

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Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

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