Investing in gold will remain popular into 2009 as the yellow metal has the potential to outperform other commodities, it has been claimed.
Speaking to the Economic Times, Angel Commodities' analyst Naveen Mathur said investors will be attracted by the current price of gold. He went on to note that a surge in demand could see gold's value exceed the record high of $1,032 per ounce reached earlier this year.
Also predicting a bright long-term future for gold, Kishore Narne, research head at Anand Rathi Commodities, believes the gold price will have reached $1,200 by mid-2009. "With liquidity infusion across the globe," Mr. Narne said, "paper currency will see an erosion in value and gold will be a better vehicle for investment."
Despite having seen its value drop off from the highs of March, gold performed well in 2008 in comparison with other commodities, such as crude oil. This trend is likely to continue given the state of the global economy, according to Archer Financial Services analyst Stephen Platt. "Gold has held up better than any asset off the uncertain monetary outlook. The dollar seems to be under a lot of pressure and there's still uncertainty to the economic outlook," he said, "and that's giving a lift to gold."